Risk Link to our Strategy Why it Matters How we manage it Macroeconomic factors – inflation, volatility in supply chain (including energy, FX and interest rates, ongoing global pandemic and geopolitical tensions). Sustain the Core The combination of several external factors driving economic uncertainty could lead to changes in the type, scope, and timing of customer orders. Our ability to delivery on schedule and on budget could be impacted by external market factors. Our annual integrated strategic planning exercises are stress tested for a range of outcomes across all our markets. We continually monitor market movements and the likely impact on our customers and suppliers. We focus on cost control and maintain cash reserves in response to business or market volatility. We adapt our ways of working to minimise the delivery risks and safety of our employees and other stakeholders. We adopt crisis management planning techniques where needed. Physical and Data Security Risks Sustain the Core Exploit and invest in Innovation A breach of physical or data security, cyberattack or system failure could adversely impact our business and 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 physical and network security measures to protect our systems and data. Software tools monitor and support our data and systems security. All employees undertake mandatory training, and we have a perpetual cycle of refresher training. We have split the role of CISO from Global ICT to enable more focus on Info Security across the organisation given the ever-increasing privacy and security concerns of governments and customers. Business Transformation – Organisational Design, and ERP System Implementation Sustain the Core Grow through Collaboration Exploit and invest in Innovation We are working through a significant business transformation and organisational change management programme, including the rollout of a global ERP system. Oversight and governance by our senior leadership team ensures investment decisions are aligned with our strategy. We apply a range of change management programme disciplines supported by external consultants. We are strengthening our business change management efforts to accelerate the introduction of new technologies. Innovation – new technologies and digitalisation; market disruptors Exploit and Invest in Innovation Grow through Collaboration New technologies and industry trends change how our customers operate, and constant innovation is required to stay competitive and relevant. We invest in innovation that is aligned with our overall strategy and may give us a competitive advantage. Through targeted spending programmes and by working closely with our customers we continue to mature our approach to delivering more advanced solutions. We launched a digitalisation strategy to help drive efficiencies and sustain the skills necessary to support our customers. Long-term Liabilities: Defined Benefit Pension Commitments Sustain the Core We hold defined benefit (DB) pension schemes which are now closed. A material and sustained drop in the value of the pension funds assets, or an increase in liabilities beyond actuarial assumptions, could require additional funding to manage the deficit. We manage the DB scheme liabilities by implementing appropriate funding strategies based on actuarial valuations. We also manage the assets by selecting an overall strategy that will both minimise risk to an acceptable level and generate sufficient return to manage the overall cost to the Company. During 2022 we worked with the Trustees of the BMT UK Scheme to employ the services of a Fiduciary Management Investment organisation to execute and manage the approved investment strategies on behalf of the Trustees. A key part of this strategy is to provide protection to the scheme against changes interest rates and inflation which are the key risks that can cause an increase in the scheme’s liabilities. 35
RkJQdWJsaXNoZXIy NTcyOTY=