Responsible Risk Taking
Growth has been central to Informa’s strategy since 2014, and the continuation of growth remains a key principle for 2018 and onwards.
The Group recognises that continuing to deliver growth requires taking commercial risks. To enable the business to pursue opportunities at all levels in an agile away, Informa’s approach is one of responsible risk taking, where risks are transparently identified, monitored, reported and actively managed.
The Board believes risk and reward should be balanced, and that no risks or rewards should be taken that are outside of Informa’s approved strategy, guiding principles and financial objectives. Through its risk appetite and tolerance statement, the Board directs the Group to assess risks when considering opportunities and mandates an actively managed and adequately resourced management of risk.
Informa’s culture plays an important part in risk management. The Board encourages a culture of transparency, integrity and doing the right thing, in which identifying risk is encouraged, and actions are taken to ensure any necessary controls or resources are in place to manage that risk and ensure business objectives are delivered efficiently.
During 2017, there was a considerable focus on culture, behaviour and ethics with enhanced training, updated policies and new, accessible reporting facilities introduced. For 2018, the focus is on continuing to support a culture that enables responsible risk taking, and maintaining the ongoing improvement in risk management rigour, including a more holistic oversight of our principal risks and the identification and monitoring of key risk indicators.
Informa’s Risk Management Governance Framework is designed to provide the Board with oversight of, and insight into, the most significant risks the Group faces.
The Group’s Divisions form the first line of defence against risks and are required to identify and report risks in their business and markets to the Risk Committee. The Group risk function provides specialist support to each Division in risk identification and analysis.
The Risk Committee gives the Board informed direction and guidance on acceptable levels of risk and advises on any necessary changes to compliance and operational controls.
It meets quarterly on a formal basis, and colleagues regularly work together outside of these meetings as is required to manage risk. Financial controls are monitored, checked and assured through the Audit Committee. Internal Audit reports to the Audit Committee and has the remit to test all controls.
The Audit Committee oversees the work of the Risk Committee and challenges its activities, ensuring its work, and that of the Divisions, is fairly assessed and reported. The Risk Committee and Audit Committee provide independent reports to the Board. Steering committees for major projects report directly to the Board.
Through the governance channels and reporting process, the Board monitors and reviews the effectiveness of the Group’s internal control systems, issues guidance for the management of risk and approves risk management initiatives.
More information on the Group’s principal risk and uncertainties