The Committee’s main responsibilities are to ensure adequate and effective risk management systems and controls are in place across the Group on behalf of the Board, in accordance with the UK Corporate Governance Code, as well as ensuring that the Group is acting in accordance with its approved risk appetite.
It advises the Board on its risk appetite, tolerance and strategy and provides recommendations to the Board on the effectiveness of the internal control environment. The Committee’s Terms of Reference explain the Committee’s role and responsibilities and are reviewed yearly to ensure they remain appropriate. The Terms of Reference can be found here, in the Useful Documents section of our Website.
The Assistant Company Secretary acts as Secretary to the Committee. In accordance with its Terms of Reference, the Committee is required to:
- monitor and review the effectiveness of the Company’s risk management and internal control systems;
- review the Company’s procedures to manage or mitigate principal risks and to identify emerging risks;
- assist in the Board’s assessment of principal and emerging risks;
- review and assess the Company’s risk appetite and associated stress testing;
- evaluate the Company’s principal risks, to be taken into account by the Board when assessing the Company’s prospects;
- review and approve the statements to be included in the Annual Report concerning internal controls and risk management;
- advise the Board on the Company’s overall risk appetite, tolerance and strategy, and the principal and emerging risks the Company is willing to take in order to achieve its long-term strategic objectives; and
- advise the Board on the likelihood and the impact of principal risks materialising, and the management and mitigation of principal risks to reduce the likelihood of their incidence or their impact.
To find out more about the activities of the Risk Committee during the latest financial year, you can read the full Risk Committee Report in the relevant published Annual Report and Accounts.