Approach to Risk
Risk appetite, the risk management process, and associated mitigating activities are all essential elements of the Group’s strategic and operational planning processes.
4imprint’s business model means that it may be affected by a number of risks, not all of which are within its control. The Board seeks to take a balanced approach to the risks and uncertainties that it faces, encouraging an appetite for measured risk-taking that contributes to both the operational agility and innovative culture that it believes is necessary to meet the Group’s strategic objectives. That risk appetite is, however, tempered by risk identification, evaluation and management.
Risk management process
The Board has ultimate responsibility for the Group’s risk management process, although responsibility for reviewing specific risk controls has been delegated to the Audit Committee. The Executive Directors and operational management teams are responsible for the identification and evaluation of risks and the subsequent implementation of specific risk mitigation activities. A formal risk review is conducted by the Board at least annually. During 2020 valuable progress has been made in developing and enhancing the Group’s risk management process through the establishment of a more rigorous risk management and internal control framework. Work on this was hampered during the year due to more pressing COVID-19 concerns; however, the new framework was launched in January 2021, including quarterly meetings of the newly established Business Risk Management Committee.
It is important to note that business operations are conducted from centralised facilities in Oshkosh and Manchester, with short reporting lines. The Executive Directors are close to day-to-day matters, facilitating early identification of, and response to, evolving risks. Going forward, emerging risks will be reported and assessed on a quarterly basis at meetings of the Business Risk Management Committee. Urgent issues arising will continue to be escalated as appropriate and discussed at regular Board meetings.
Outlined on the risk matrix page are the current principal potential risks and uncertainties to the successful delivery of the Group’s strategic goals. The list is not exhaustive and other, as yet unidentified, factors may have an adverse effect.