Risks and Risk Management
WE BELIEVE THAT RISK IS BEST MANAGED BY A COMBINATION OF THE FOLLOWING:
- Formal risk management processes as described in this report.
- The Board and senior management leading by example.
- Alignment through promoting colleague shareholding in Dunelm.
- Embedding our culture and values.
Our Approach
Whilst we have formal processes for identifying, assessing and reviewing risk, the Board as a whole takes responsibility for the management of risk throughout the business. In addition, our Principal Risks and Uncertainties oversees the risk management process as part of its activities.
Risk Management Framework
The Board confirms that:
- There is an ongoing process for identifying, evaluating and managing the principal risks faced by the Group, including to identify emerging risk.
- The systems have been in place for the year under review and up to the date of approval of the Annual Report and financial statements.
- They are regularly reviewed by the Board.
- The systems accord with the guidance to Audit Committees issued by the Financial Reporting Council dated April 2016.
OVERVIEW OF RISK MANAGEMENT RESPONSIBILITIES
The table below sets out how responsibility for risk management is allocated and how that responsibility is discharged:
BOARD
COLLECTIVELY RESPONSIBLE FOR MANAGING RISK
- Conducts formal reviews of principal risks (including emerging risks) twice a year – one of which is in connection with consideration of the viability statement.
- Risk topics reviewed in depth through regular timetabled presentations or papers.
- Regular discussions of ‘what keeps us awake at night’.
- Monitors KPIs through Board reports.
- Assesses the coverage and adequacy of independent assurance.
- Ensures 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.
- Conducts formal reviews of the risk management process twice a year – one of which is in connection with consideration of the viability statement.
- Holds the relationship with the independent Internal Auditor, approves the rolling internal audit programme, and receives internal audit reviews of selected risks.
- Selects and proposes topics for ‘key risk’ reviews by the Board.
EXECUTIVE BOARD
REVIEWS PRINCIPAL RISKS
MEMBERS RESPONSIBLE FOR MANAGING RISK WITHIN THEIR AREAS OF ACCOUNTABILITY
- Conducts formal reviews of principal risks (including emerging risks) twice a year.
- Reviews risk topics through regular timetabled presentations or papers.
- Monitors KPIs through Executive Board reports.
- Delegates line responsibility for managing risk within their area of accountability to individual Executive Board members, and reviews these formally twice a year
COMPANY SECRETARY
ENSURES THAT RISK MANAGEMENT PROCESSES ARE ADHERED TO
- Conducts individual risk reviews with Executives.
- Maintains the risk registers.
- Presents the outcome of the risk review to the Executive Board, the Audit and Risk Committee and the Group Board twice a year.
- Ensures that principal risk topics are scheduled for regular review by the Executive Board and the Group Board.