A process is in place to enable the Board to identify the major business, operational, financial and compliance risks faced by the Company and to determine the appropriate course of action to manage and monitor these risks. This process is regularly reviewed by the Audit Committee and reported to the Board as appropriate.

The Company identifies and distinguishes ‘High Profile Events’, i.e. those risks that could have material effect on the Company’s financial position or reputation, from other business risks that it assesses and considers to be acceptable for the Company to bear taking into account the industry and the markets in which it operates.

The Audit Committee reviews annually the Company’s subsidiaries and investments from a business, operational and financial risk perspective to ensure that the system of internal control and accountability is embedded in the operations of the Group. Members of the Audit Committee visit subsidiaries and operations on a regular basis.

The Audit Committee considers that management are conscious of the need to identify and assess risks in their operations and the effect of changes in the business environment, to respond quickly and appropriately and to report immediately any significant control failings and weaknesses that are identified together with details of corrective action.