In accordance with the FRC ‘Guidance on Risk Management, Internal Control and Related Financial Business Reporting’ the Board recognises that it is responsible for the Group’s system of internal control and risk management. The system has been designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.
The Board has embedded a continuous process for identifying, evaluating and managing the Group’s significant risks, including risks arising out of Bodycote’s corporate and social engagement. The Board’s monitoring covers all significant strategic, financial, operational and compliance risks. It is based principally on reviewing reports from management and from Internal Audit (IA) to consider whether any significant weaknesses are promptly remedied or indicate a need for more extensive monitoring. The Audit Committee assists the Board in discharging these review responsibilities.
To meet updated guidance from the FRC a new process was implemented in 2019 to identify emerging risks. These risks are characterised by their high level of uncertainty both in terms of likelihood and potential impact and are therefore more difficult to manage or mitigate. The process, based around horizon scanning, has explored what the future might look like and seeks to identify early warning signals. Risks that have been considered by the Board have included climate change, new technologies, and cyber risks.
The Board is satisfied that the Group maintains an effective system of internal controls and that there are no significant deficiencies in the system. The system was in operation throughout 2019 and continues to operate up to the date of the approval of this report. The key elements of the Group’s system of internal control that is monitored by the Board includes:
During 2019, in compliance with provision 29 of the Code, management performed an assessment of its risk management processes for the purpose of this Annual Report. Management’s assessment, which has been reviewed by the Audit Committee and the Board, included a review of the Group’s key strategic, operational and emerging risks. The review was based on work performed by the Group Head of Risk and the Group’s Risk and SHE Committee (by means of workshops, interviews, investigations, and by reviewing departmental or divisional risk registers). These risks have been reviewed throughout the year and no new risks have been added in 2019. Further information regarding the ways in which the principal business risks and uncertainties affecting the Group are managed is shown on pages 27 to 30 of the 2019 Annual Report.
By order of the Board:
U.S. Ball
Group Company Secretary
12 March 2020
Springwood Court
Springwood Close
Tytherington Business Park
Macclesfield
Cheshire
SK10 2XF
In accordance with the FRC ‘Guidance on Risk Management, Internal Control and Related Financial Business Reporting’ the Board recognises that it is responsible for the Group’s system of internal control and risk management. The system has been designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.
The Board has embedded a continuous process for identifying, evaluating and managing the Group’s significant risks, including risks arising out of Bodycote’s corporate and social engagement. The Board’s monitoring covers all significant strategic, financial, operational and compliance risks. It is based principally on reviewing reports from management and from Internal Audit (IA) to consider whether any significant weaknesses are promptly remedied or indicate a need for more extensive monitoring. The Audit Committee assists the Board in discharging these review responsibilities.
To meet updated guidance from the FRC a new process was implemented in 2019 to identify emerging risks. These risks are characterised by their high level of uncertainty both in terms of likelihood and potential impact and are therefore more difficult to manage or mitigate. The process, based around horizon scanning, has explored what the future might look like and seeks to identify early warning signals. Risks that have been considered by the Board have included climate change, new technologies, and cyber risks.
The Board is satisfied that the Group maintains an effective system of internal controls and that there are no significant deficiencies in the system. The system was in operation throughout 2019 and continues to operate up to the date of the approval of this report. The key elements of the Group’s system of internal control that is monitored by the Board includes:
During 2019, in compliance with provision 29 of the Code, management performed an assessment of its risk management processes for the purpose of this Annual Report. Management’s assessment, which has been reviewed by the Audit Committee and the Board, included a review of the Group’s key strategic, operational and emerging risks. The review was based on work performed by the Group Head of Risk and the Group’s Risk and SHE Committee (by means of workshops, interviews, investigations, and by reviewing departmental or divisional risk registers). These risks have been reviewed throughout the year and no new risks have been added in 2019. Further information regarding the ways in which the principal business risks and uncertainties affecting the Group are managed is shown on pages 27 to 30 of the 2019 Annual Report.
By order of the Board:
U.S. Ball
Group Company Secretary
12 March 2020
Springwood Court
Springwood Close
Tytherington Business Park
Macclesfield
Cheshire
SK10 2XF
© 2019 Bodycote