Annual Report and Accounts 2016
John Lewis Partnership plc
53
Risk management governance structure
Partnership Council
Direction and oversight
Risk policy, tolerances and framework
Chairman’s Committee
Risk activity and approval
Risk identification, evaluation, management, monitoring
and reporting Divisional Risk Committees Waitrose John Lewis
Partnership Services
Group Waitrose
Partnership Board
Corporate
Responsibility Committee
Audit & Risk Committee
Risk appetite
This year we have strengthened our definition of risk appetite and integrated it within our wider risk management framework to better inform decision-making across the Partnership.
The Partnership Board has clearly articulated the amount of acceptable risk within which Divisions can operate. This has been derived from our Constitution and takes into consideration the acceptable level of risk across strategic, operational, financial and compliance risks faced by the Partnership.
Our appetite provides direction and boundaries for consistent, measured, risk-aware decision-making throughout the Partnership and ensures that we are taking the right level and type of risk.
Divisional Management Boards John Lewis
Partnership Services
Group
A scale of one to five illustrates the range of our risk appetite. Our risk tolerance for each type of risk is defined within this range. For example we will take more risk in pursuit of our strategic objectives to drive our business forward, versus a minimal risk tolerance to compliance at the other end of the scale.
Risk Owners
+
Risk Management Function
Principal risks are assessed through the governance structure against the Board’s risk appetite, from the Partnership Board level to the day-to-day activities at a Divisional level.
E Risks or opportunities?
Risks come in different forms, from the external environment in which we compete, or internally from uncertainties, or issues with our strategic responses, or from how we operate our business model. Risks also involve opportunities we might miss for further growth and a sustainable future.
Actioning and monitoring risks
As part of our D Assessing risks tolerance C
Evaluating risks and controls
strategic, business planning and review process
B
Identifying risks
A
Understanding the context
Very high 5
3 4
1 2
Minimal
Risk Appetite Barometer
It’s Your Performance
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