Risk and Risk Management

The Board recognises that the appropriate management of risk is key to the delivery of the Group’s strategic objectives and the continued delivery of superior returns for all of our stakeholders.

We actively capitalise on the opportunities impacting our industry to ensure that the Group remains well positioned to deliver on the evolving needs of our customers. Our diversified business model means that we have low operational leverage with no single contract material to the Group. This enables us to take on a level of financial leverage in expanding the business. As a leading international transport company, however, the Group is exposed to an evolving landscape of risks, whether industry-wide or more specific to the Group, which could potentially impact performance or reputation negatively as well as positively.

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Risk management framework

 
The effective management of risk is a core component of the Group’s day-to-day management activities, for example the usage of very granular, detailed KPI tracking in monthly divisional reports, or robust due diligence on acquisitions. This is only the ‘first line’ of the Group’s risk management structure where internal control and risk management processes are based on the accepted ‘three lines of defence’ model. The Group Executive Committee as well as specialist functional teams provide a second level of defence, supporting front-line teams and building organisational capability. The Audit Committee provides additional assurance with ‘deep-dive’ reviews into specific areas of risk, for example cyber assurance. Ultimate oversight of the Group’s risk appetite and processes is provided by the Board.

Defence

Responsibility

Actions
Oversight Board
  • Sets strategic objectives
  • Determines overall risk culture and appetite
  • Establishes organisational structure with defined lines of responsibility, delegated authorities and clear operating processes
Third line Audit Committe/Group Audit
  • Provides reasonable assurance that systems of risk management, internal control and governance are effective
Second line

Group Executive Committee

Group functions including Risk
  • Supports divisions with ‘first line’ responsibilities Coordinate and report on Group-level risks
  • Builds risk capability and understanding
First line

Divisional Executive Committees

Divisional management
  • Identify, assess and report key risks
  • Regularly review and update divisional risk registers
  • Implement risk mitigation plans
    Risk

Risk Appetite

 

The Board recognises that continuing to deliver superior returns for shareholders and other stakeholders is dependent upon accepting a level of risk. Our risk appetite sets out how we balance risk and opportunity in pursuit of our strategic objectives:

Zero Tolerance

The Group has zero tolerance for risk which may impact:

  • The safety of our employees, customers or the general public
  • Our reputation and brand
  • Our legal and regulatory compliance

Core business / Operational Excellence

Technology

Strategic Growth / M&A

The Group has low tolerance for risk in its core operations.

The Group accepts a moderate levels of risk in investing in and adopting technologies that will enhance customer service or improve operational and safety performance.

The Group accepts a moderate level of risk in pursuing new opportunities, including potential new markets.

Principal risks and uncertainties