30 Risk Report


Finsbury Food Group Annual Report and Accounts 2020


The Directors recognise the need for a healthy system of internal controls and risk management. We have identified the following as the principal risks and uncertainties the Group faces.


External


Risk management is regarded as essential to achieve the Group’s strategic and operational objectives. An annual, formal review of risks is carried out as an integral part of our strategic planning process. Each business updates its risk register and the registers are presented to the Audit Committee together with mitigating actions.


Following a preliminary recommendation by the Audit Committee, the Board reviews the highest risk items for the Group and the mitigations.


The risks considered material, how they have evolved year on year and the principal mitigating actions are:


01 Covid-19 Pandemic


Movement in year


Principle Risk The pandemic has resulted in significant changes to the retail and foodservice sectors. Consumers have changed their shopping behaviour within retail with both positive and negative implications for Finsbury’s products. Foodservice volumes continue at less than half their pre-outbreak levels.


Finsbury’s bakeries have easily adjusted to social distancing guidelines. The ongoing risk of the disease is absenteeism that, at elevated levels, could restrict the ability of our bakeries to meet demand.


Mitigation Crisis team formed; meeting daily to oversee the impact of the pandemic.


The priority is and was to ensure the safety of all employees and to make rapid changes to the way the business operates by establishing safe ways of working based on social distancing and home working.


Financially the business moved to manage cash while ensuring no adverse consequential impact to our customer and supplier base.


Commentary New risk with significant impact on commercial, operational and financial performance.


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