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OUR CORPORATE FINANCIAL PERFORMANCE GOVERNANCE STATEMENTS
Risk Monitoring
There are numerous stages in the risk management process, namely:
i) Risk identification and assessment: Risks are identified and rated based on their impact and likelihood.
ii) Risk mitigation: Management establishes procedures and/or controls to reduce the major risks.
iii) Monitoring and reporting: The procedures and/or controls are regularly monitored. Updates on risk mitigation measures, controls and total risk exposure are communicated to the Risk Monitoring Committee, which, in turn, reports to the Board.
Following the implementation of the ERM, a risk monitoring exercise was initially undertaken by Messrs BDO & Co in view of monitoring and reporting the key risks across the Group. Further to the control assessment, a report was submitted to the Risk Monitoring Committee on three types of risks, namely: operational risks, strategic risks and emerging risks. Focused on the opportunities and risks in our evolving landscape, this exercise has been pursued by our Risk and Compliance Officer.
An essential component of the risk management process is also the transfer of risks via insurance covers and our internal control system.
In 2022, a thorough review and analysis of the Group Risk Heat Map was completed. It was then submitted to the Risk Monitoring Committee and to the Board for review.
The key risk categories relevant to the Group remain as follows:
9.
Marketing and Customer Risks
1. Strategic Risks
Key Risk Categories
2. People Risks
Strategic Risks
Risk associated with uncertainties and opportunities embedded in the Group’s strategic plan and the manner in which they are executed.
People Risks
Risks associated with the recruitment and retirement of employees, on-going talent management, succession planning, relations with trade unions and regulatory bodies and staff disciplinary issues.
Health & Safety Risks
Risks associated with all events that can cause serious injury and harm to the Group’s workforce and customers.
Legal Risks
Risks linked to the legislations and regulations surrounding the operations and functioning of the Group (E.g. Competition laws, the Workers’ Rights Act, Environment Protection Act, Data Protection Act, Occupational Health and Safety Act and the Code of Corporate Governance).
Business Environment and Market Risks
Risks relating to macroeconomic evolution, politics, foreign investments and climatic conditions that are outside our control.
Operational Risks
Risk of loss resulting from inadequate or failed internal processes and procedures, human error or system failure or from external events. They include all processes and sub- processes from the time the raw materials are extracted and the manufacturing process, up to the point of receipt by customers.
Financial Risks
Risks linked to liquidity, interest rates, foreign currency exchange rates, capital structure and profitability.
Technology Risks
Risks that hardware and software are not operating as intended, thereby compromising the integrity and reliability of data and information and exposing significant assets to potential loss or misuse or exposing the Group’s ability to maintain a high standard in its main business processes. They include all IT and telephony systems and the use of latest technologically-prone equipment.
Marketing and Customer Risks
Risks associated with maintaining the quality and reputation of our branded products and innovation in our offer to customers.
8.
Business Environment and Market Risks
7. Technology Risks
3.
Health & Safety Risks
4. Legal Risks
6. Financial Risks
5. Operational Risks
UBP INTEGRATED REPORT 2022
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