44 Managing our Partnership risks (continued)


John Lewis Partnership plc Annual Report and Accounts 2015


Our formal risk assessment process for stress-testing key business plan decisions reinforces our intuitive use of risk management in every day decision-making.


How we govern risk management


The Partnership Board has overall accountability for ensuring that risk is effectively managed across the Partnership and determining the nature and extent of the significant risks it is willing to take.


The Partnership Board has delegated responsibility for the day-to-day management of the principal Partnership risks to the Chairman’s Committee, within the Board’s set risk tolerances. The Audit and Risk Committee review the effectiveness of the risk management process.


Each Division is responsible for identifying, evaluating, managing, measuring and monitoring the risks in their respective area. Divisional Risk Committees oversee the effective use of the risk assessment process, with assistance from the Group Head of Risk and Divisional Risk Managers.


Internal Audit reviews internal controls using a risk-based audit plan, and management self-certify that they have followed the risk management process at the year end.


Our governance structure encourages the effective flow of risk insights throughout the Partnership. For more detail, go to the Audit and Risk Committee report on page 104.


Waitrose


Providing confidence to our stakeholders


A formalised approach to risk management is also a Corporate Governance requirement, providing confidence to our stakeholders.


In this we apply voluntarily the principles of the UK Corporate Governance Code (‘the Code’). The Financial Reporting Council, the UK’s Corporate Governance regulator, updated the Code in September 2014. As detailed on page 85, the revised Code will be reported against for our next financial year.


Risk Management Governance structure


Partnership Council


Partnership Board


Committee


Audit and Risk


Chairman’s Committee


Divisional Management Boards John Lewis


Partnership Services


Group


Divisional Risk Committees


We have chosen to adopt the UK Corporate Governance Code on a voluntary basis. For more information about how we comply go to our governance section starting on page 82.


Waitrose Owners Risk John Lewis


Partnership Services


Group + Risk Management Function


Risk activity and approval Risk identification, evaluation, management, monitoring and reporting


Direction and oversight Risk policy, tolerances and framework


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