Risk management policy and process
At Famous Brands we believe that calculated risk taking is integral to our business success and growth. It is the responsibility of the management team and the Board to optimise the balance between risk and reward.
The Group is exposed to a wide spectrum of risk, including but not limited to strategic, financial, operational, compliance and reputational risk. Risk management is an important discipline and one of our core focus areas.
Our overarching risk management framework is aligned to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Framework, illustrated below. Our risk philosophy is connected to our strategy to create value for stakeholders through sustainable growth, without exposing the business to unwarranted levels of risk or overextending its risk appetite.
Our risk management process and frameworks enabled the Group to remain agile and resilient in extremely difficult trading conditions overcast by global economic uncertainty due to COVID-19. Risk and opportunity co-exist; having a forum that focuses on identifying and responding to risks has allowed us to realise opportunities to innovate and deliver sustainable value for stakeholders.
Source: Enterprise Risk Management Framework: integrating with strategy and performance © 2017 COSO. All rights reserved. Used with permission.
The Board has delegated the Audit and Risk Committee with the responsibility to oversee risk management for the Group. The Committee and the management team, together with the established Risk Forum, provide a culture of risk governance and awareness throughout the Group.
Risk activity and accountability
As illustrated below, risk is proactively managed across the Group.
Inherent risk heat map
Residual risk assessment
The residual risk and extent of mitigation is illustrated through the following graph: