During the year English Rural’s approach to risk management and assurance was reviewed as part of the internal audit process.
Although the review found some minor recommendations that have been acted on, overall it validated that the approach to monitoring, managing and reporting on risk across the Group was strong.
The role of the Group Audit & Risk Committee remains critical to the successful implementation of agreed risk strategy. The detailed focus of the Committee provides useful assurances to the Board. Alongside the traditional role of agreeing and considering an annual programme of internal audits, the Committee instigated risk ‘deep-dives’ during the year. These involve appraising the circumstances of a specific risk at each meeting, with risk areas chosen based on risk reporting and business performance metrics.
An annual review of the 30-year financial business plan was completed by the Committee. This year, the range of scenarios was extensive, reflecting the volatile economic operating environment. Alongside the usual mapping and reporting of agreed scenarios mitigation actions are also considered. These represented as a range of options within a financial recovery plan that can be applied to varying degrees dependent on the nature and severity of the financial risk faced.
