Risk Why it’s important How we manage it Physical, Data and Cybersecurity Risks Strategic Priorities Customer, Performance, People A breach of physical or data security, cyber-attack or system failure could adversely impact our business and potentially our stakeholders, and may lead to a breach of regulations, exposing the company to financial and reputational losses. We adopt a multi-layered approach, using appropriate physical and network security measures to protect our systems and data. We employ several software tools to monitor and support our data and systems security. All employees are required to take mandatory training. We assess our network resilience and security, including undertaking cybersecurity health-checks, and we adapt our mitigations using available software tools where practical. People – Attraction, Retention & Development Strategic Priorities Performance, People We achieve success through our people, and we need to be able to recruit and retain the requisite skills to meet our customers’ expectations and to drive the business forward. We operate targeted recruitment campaigns to ensure we attract the best people, and we benchmark our performance against other companies in key areas. We maintain a Global Careers Map to assess performance, enable opportunities for development and progression and facilitate succession planning. We provide a number of platforms for training and development and for employee engagement. Our transformation programme will facilitate greater collaboration and knowledge sharing across the organisation. Financial Management Strategic Priorities Performance, People We fund our current operations and our future needs through funds held in banks or managed by external fund managers. Our funding needs are dependent on our performance and our ability to generate positive cashflows and profits. While the majority of our revenues are generated in the UK, the Group is exposed to movements in foreign currency exchange rates for the translation of net assets, revenues, and expenses of our overseas subsidiaries, as well as any assets and liabilities denominated in foreign currencies. Senior level committees have been established with specific responsibilities for management of the Group’s finances, having regard both to funds held internally and to those managed by external fund managers. We closely monitor cashflow forecasts and payment performance, both at individual project and client level. Where possible, each business undertakes commercial transactions in its own functional currency. Where this is not possible, the Group manages its foreign exchange risk from commercial transactions using derivative contracts where appropriate. Long-term Liabilities Defined Benefit Pension Commitments Strategic Priorities Performance, People We hold defined benefit (DB) pension schemes which are now closed. A material and sustained drop in the value of the pension fund assets, or an increase in liabilities beyond actuarial assumptions, could require additional deficit funding. We manage the DB scheme liabilities by implementing appropriate funding strategies based on actuarial valuations. We work with Trustees to employ the services of a Fiduciary Management Investment organisation to execute and manage the approved investment strategies on behalf of the Trustees. Legal, Ethical & Compliance Risks Strategic Priorities Customer, People We work across several highly regulated industries and markets, and we hold the trust of our stakeholders to be compliant, and to behave ethically and responsibly, and follow all the relevant regulations, (including trade and export trade sanctions, ITAR (International Trade in Arms Regulations), UK Bribery Act etc.). We manage the risk of a significant breach of ethics or regulations by instilling the right behaviours and culture, supported by clear policies and procedures, including mandatory training and compliance. We maintain an independent, confidential helpline to enable employees or third parties to raise concerns. Due to the nature of our business, we assess potential risks at the bid stage to allow the requisite mitigations to enable compliance with the relevant legislation (such as ITAR or tax regulations). For climate related risks, see our Sustainability Report 35
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