BT 2015 Annual Report Download - page 43

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Overview
The Strategic Report
Purpose and strategy Delivering our strategy
0ur lines of business Group performance Governance Financial statements Additional information
Our risks
ie all businesses we are aected b a nuber of riss
and uncertainties. hese a be ipacted b internal
and eternal factors soe of which we cannot control.
an of our riss are siilar to those felt b coparable
copanies in ters of scale and operation.
Principal risks and uncertainties
n this section we eplain soe of the principal riss and uncertainties
aectin us. hese riss have the potential to ipact our business
brand people assets revenue profits liuidit or capital resources.
heprincipal riss we described last ear have evolved and so too has
our response to the.
ur nterprise is anaeent fraewor provides reasonable
butcannot ive absolute assurance that sinificant riss are identified
and addressed. here a be soe riss which are unnown to us at
present. nd there a be soe that we consider less sinificant now
but becoe ore iportant later.
ternal factors can present both riss and opportunities to our business
and to others. e focus our eorts on predictin and itiatin the
riss while at the sae tie seein to capitalise on opportunities that
a eere.
e reconise the particular uncertaint that political and eo-political
riss present both in the UK for eaple the cottish independence
referendu in 01 and loball. e now onitor these throuh a
separate sub-coittee of our roup is anel.
n the principal riss section below we tal about what we are doin to
stop our ain riss aterialisin or to liit their ipact. ur principal
riss and uncertainties should be considered alon with the ris
anaeent process the forward-looin stateents in this docuent
and the cautionar stateent reardin forward-looin stateents
which ou can read on pae 09.
How we manage risk
e need to anae ris so we can eet our obectives build shareholder
value and proote our staeholders interests. e have a roup-wide
ris anaeent process and we show its four staes below.
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Business activities
Monitoring Evaluation
Response
Changes over the year
n 011 we iproved the wa we anae ris throuh enhancin
our ris anaeent trainin foralisin the linae between our
investents and our principal riss and proactivel assessin eerin
riss. his ear we ade further iproveents includin
roect and prorae ris anaeent
e developed an enhanced ris anaeent polic process and
toolit to provide uidance to colleaues anain ris in proects and
proraes. his was supported b additional trainin for our proect
anaeent counit.
is appetite
is appetite the nature and etent of the riss we are prepared to tae
has been reviewed b both the oard and the
peratin oittee
this ear. e have also proressed this wor in our lines of business
foreaple usin ris appetite to help deterine the relative criticalit
of dierent  sstes.
is culture
linin with our oranisational health prorae we have identified
opportunities to build into the behaviours bein ebedded into
our business a culture that positivel supports active and open
risanaeent.
Enterprise Risk Management framework
Line of business and
BT TSO audit
& risk committees
Line of business and BT TSO
leadership teams
ur lines of business and  
follow our process for anain
ris as part of our nterprise is
anaeent fraewor. hat
means identifying and responding to
the e riss to their business.
he record the riss in a reister
for their leadership teas to review.
udit  ris coittees in each line
of business and   ensure this
process is eective.
Operating
Committee
he peratin oittee identifies
evaluates responds to and onitors
riss. inificant riss are reported
and onitored throuh the roup
is eister. he Operating
oittee
assigns a management
owner to tae chare of onitorin
and anain each ris. t onitors
riss throuh reular detailed
reviews as well as si-onthl
reviews of the roup is eister.
Group Risk
Panel
he roup is anel supports
the oard and the Operating
oittee
. ver three onths
it reviews the roup is eister
which suarises those riss of
reatest sinificance across our
business considers the inclusion
of new or eerin riss and
recoends was to tacle the.
t also oversees the wor of the
roup risanaeent function.
eo-political riss are reviewed b a
sub-coittee of the anel.
Audit & Risk
Committee
Board
he oard has overall responsibilit
for ain sure we anae riss
appropriatel. t reularl reviews
either directl or throuh the Audit
 is oittee
 how we are doin
across the roup in our lines of
business and in  .