John Lewis Partnership plc annual report and accounts 2013
Business Interruption
The Partnership faces a number of significant risks that have the potential to interrupt business such as a major information loss, failure of information technology systems or terrorist attack. To monitor, manage and mitigate these risks and continue trading, we have an appropriate and effective Business Continuity capability with operational and information technology plans, processes, procedures and organisations. The Head of Operational Risk Management, who reports to the Finance Director, is responsible for the further development and maintenance of this capability.
Talent management
The attraction, development and retention of talent are critical to the delivery of our strategies and represents a key risk for the Partnership. Our benefits and remuneration are benchmarked annually to support competitive packages and attract talent. We also have a Leadership Development Programme that meets the succession and capability needs of the business, and we are rolling out improved performance and talent management processes to enable robust career development across the business, helping Partners realise their full potential.
Reputation
Any failure in products and service would damage our reputation resulting in a loss of customer confidence. The Partnership has rigorous Product Safety testing for suppliers and products. All suppliers of own brand product have their manufacturing sites assessed and, where product safety is relevant, an accredited third party tests these suppliers on our behalf.
Food safety is monitored throughout the supply chain. Our Food Technology department works externally with suppliers, government bodies and trade associations to ensure all issues of food safety are monitored, addressed and policies implemented. Suppliers are audited and reviewed on an ongoing basis to ensure they continue to meet both legal and Partnership criteria in terms of food safety, legality, quality and brand.
Health and safety
The Partnership is committed to going about its business in a way that avoids causing harm to people or property, so far as is reasonably practicable, and to promoting the wellbeing of its workforce through its extensive occupational health service. This commitment underpins our approach to health and safety, with Board level responsibility being carried by the Director of Personnel, supported by specialist technical advisers in safety and occupational health employed within the divisions. We cannot expect to eliminate health and safety risk totally from the workplace but our current priority is to ensure that management at all levels know and understand the risks within their areas of responsibility. We review the quality and effectiveness of our risk assessment, incident investigation processes and the completeness of our health and safety management systems.We seek to enhance our systems to support a proactive approach in meeting our commitments to the safety and well-being of our Partners, suppliers and customers.
Input cost inflation
Input cost price inflation is a risk to our businesses and as a result we closely monitor the environment to ensure that we are obtaining the best value, at a fair price, for products and raw materials that we source. We also continue to focus on delivering operational efficiencies, to help offset these increases, through a number of efficiency programmes and initiatives. In addition, input cost inflation is managed through our financial hedging strategy for future foreign exchange and energy pricing exposure.
Other significant risks and uncertainties
The Partnership also faces other, sometimes unforeseen, significant risks and uncertainties, such as criminal and public disorder incidents, and the need to comply with new legislative and regulatory requirements. The Partnership Board proactively reviews other potential risk areas and has the means to manage and mitigate these risks where feasible.
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