We have an established Risk Management Structure in place to help us capture, document and manage risks facing our business. We monitor this structure to ensure it is appropriate for our company size, culture and business model.
Our aim is to manage each of our risks and mitigate them so that they fall within the risk appetite level we are prepared to tolerate for each risk area.
The Risk Management Structure is underpinned by close working relationships between the
Executive Directors, Senior Management and other team members, which enhances our ability to efficiently capture, communicate and action any risk issues identified.
We have a Risk Committee, which meets monthly and has responsibility for co-ordinating risk management activities throughout the Group. It prepares regular reports to the Board and Audit Committee.
The Risk Committee comprises the Chief Executive Officer, the Operations Director and Company Secretary, alongside The Head of Finance and other Senior Managers and representatives from across the Company. The Risk Committee engages with staff throughout the business and our small
size helps to ensure good communication between each business area. In addition, frequent visits by head office staff to our business centres help to ensure awareness and understanding of any propertyspecific risks and issues. We also invite Centre Managers to attend Risk Committee meetings on a rolling basis.
Risk registers for all business areas are maintained and risks are assessed against a defined scoring mechanism.
Overall, we review risks in two strands:
1. Strategic Risks:
These are identified, assessed and managed by the Executive Committee on behalf of the Main Board. These risks are reviewed at Board level to ensure they are valid and relate to the current strategic direction and objectives of the Group. Details of our strategic risks and the mitigating activities in place to reduce these risks are set out on the following pages. The Board is satisfied that we continue to operate within our desired risk appetite.
2. Operational Risks:
These are identified, assessed and managed by the Executive Committee. These risks cover all areas of the business, such as Finance, Operations, Investment and Development. Day-to-day operational risks are closely reviewed and managed by the Executive Committee and senior management, with information being reported to the Board and Audit Committee as appropriate.
Risk registers for all areas are maintained and risks are assessed against a defined scoring mechanism to ensure consistency. High-rated risks identified in the registers are regularly reviewed by the Board, Audit and Executive Committees.