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John Lewis Partnership plc Annual Report and Accounts 2014
PRINCIPAL RISKS AND UNCERTAINTIES
Understanding and responding to risks in our operations means we can make informed decisions and ensure a bright future for the Partnership.
Risk management Risk arises from the operations and strategic decisions taken by every business. It’s not something that can be avoided, but should be understood and harnessed in the pursuit of our shared objectives. Effective risk management ensures that the risks facing the Partnership are understood and managed appropriately, enhancing our capacity to build value.
The Partnership Board has ultimate responsibility for risk management throughout the business, determining the nature and extent of the risks we are willing to take to achieve the Partnership’s objectives. Certain responsibilities, such as overseeing the systems of risk management
and internal control, have been delegated to the Audit and Risk Committee, which completes an annual review of the effectiveness of these processes.
Risk is managed proactively throughout the Partnership by Divisional Risk Committees, operating close to the heart of our business. This allows us to make an agile and rapid response to risks as they arise.
In 2013/14, there was significant investment in the risk management process, resulting in improved understanding and reporting.
As this is a co-owned business, we aim to embed in Partners an individual awareness of the risk management responsibilities that impact on their specific areas of operation.
Partnership Board Ultimate responsibility for the management of risk throughout the business. Chairman’s Committee
Executive Directors with responsibility for the identification and management of key Partnership risks.
Audit and Risk Committee Responsible for oversight of the
Partnership’s systems of risk management and internal control.
Divisional Board Members and Corporate Board Directors Responsible for the risks in their areas of control.
Divisional Risk Committees
Oversee the embedding of the risk management framework. Partners
Responsible for ensuring the Partnership is not exposed to unwanted risks and for escalation where they believe risks are not being appropriately managed.
Risk management framework
Comprises the policy, supporting systems and processes, and the management reporting which enable the Partnership to identify, manage and monitor risks.
“ We made great strides in the way we manage risks throughout the Partnership, with the Divisional Risk Committees close to the heart of our business operations.”
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