Risks and Risk Management
The Board as a whole takes responsibility for management of risk throughout the business.
We believe that risk is best managed by a combination of the following:
- Formal risk management processes as described below
- The Board and senior management leading by example
- Alignment through promoting colleague shareholding in Dunelm
- Embedding our culture and values
Given the size of our Board and the relative lack of complexity in our business, we do not have a separate Board Risk Committee; our Audit and Risk Committee oversees the risk management process as part of its activities.
Risk Management Framework
Board
Collective responsibility for managing risk
- Formal review of principal risks twice annually – one of which is in connection with consideration of the viability statement
- Separate discussion of a key risk topic (‘what keeps us awake at night’)
- Risk topics reviewed through regular timetabled presentations or papers
- Monitors KPIs through Board reports
- Executive Directors have line responsibility for managing specific risks
Audit and Risk Committee
Oversees risk management process
- Receives report on risk management process twice annually
- Formal review of principal risks twice annually – one of which is in connection with consideration of the viability statement
- Allocates resources for independent assurance reviews of selected risks
- Selects topics for ‘key risk’ reviews by the Board
Executive Board
Reviews principal risks
Members have responsibility for managing risk within their area of accountability
- Formal review of principal risks twice annually
- Reviews risk register once a year
- Risk topics reviewed through regular timetabled presentations or papers
- Monitors KPIs through Executive Board reports
- Executive Board members have line responsibility for managing risk within their area of accountability