Page 27


(Photo captioned: Broadening our multi-channel offer and extending our customer base are key to the Partnership's growth ambitions)


• Insurance

The group’s captive insurance company, JLP Insurance Limited, provides reinsurance of the group’s employer’s, public and vehicle third party liability insurances and of the group’s healthcare insurance cover. It also insures ServicePlan Limited and reinsures Landmark Insurance Company Limited, third party providers of extended warranty products to customers of John Lewis.

Pensions risk

Managing our pension obligations effectively is of critical importance to our Partners. The Pension Fund assets are held in separate funds administered by the Trustees, who delegate day-to-day management of these funds to a number of investment managers.

Human resources

The successful delivery of key strategic projects, such as the implementation of new systems, the reengineering of business processes or major infrastructure development, are of paramount importance to the Partnership as they improve the efficiency and resilience of our operations whilst providing a strong platform for future growth. The successful delivery of these projects depends on the resources and skills sets available to the Partnership. Our Personnel strategy aims to ensure that the Partnership possesses the appropriate skills and resources required to deliver these projects. Resources are continually reviewed and aligned with the business critical priorities. Skills gaps are addressed through first-class training and development of Partners. When the required skills are not available due to resources constraints or their highly specialised nature they are bought in by the Partnership.

Customer offer

Broadening our multi-channel offer and extending our customer base are key to the Partnership’s growth ambitions. We also recognise that the pre-eminent quality of our products and customer service are critical to the Partnership’s success, and a deterioration of these would impact our business. The Partnership has a clear multi-channel strategy to extend its reach whilst leveraging our online position with our established footprint. In addition, we regularly review our customer and service strategies that include ongoing category and range reviews, whilst continuing to invest in our store environments and our multi-channel offer.

Fraud and compliance

As with any business, there is a risk of fraudulent behaviour from our employees. Although we believe that the Partnership structure, where every Partner is a co-owner of the business, reduces this risk considerably and clearly defines our internal code of ethics, we do not underestimate the potential for financial crime at any level of the business. Extensive steps are taken to reduce this risk, including clear accounting processes and auditing and review by our Internal Audit department. In addition, the Head of Business Protection and Continuity has a specific brief to monitor the risk and incidence of fraud in the business and to review our existing practices to ensure that they are appropriate to meet business needs going forward.

Operational

Operational efficiency is of paramount importance in a business dedicated to delivering best value in quality and service. Our risk management approach encourages a proportionate response to each area of operational risk, with a combination of generic standards and local ownership. Supply chain resilience and product quality management are regarded as two key operational risks.