EasyJet 2015 Annual Report Download - page 30

26 easyJet plc Annual report and accounts 2015
Risk continued
OPERATIONAL EXCELLENCE
Risk description Mitigation
Significant network disruption
A number of factors could lead to widespread
disruption to easyJet's network, including forces
of nature (extreme weather, volcanic ash, etc.),
terrorism, epidemics/pandemics or the closure
of a key airport.
Significant disruption to the network could
significantly adversely affect easyJet's reputation
and its operational and financial performance.
Link to strategy:
1 2 3 4
There are processes in place, and clear roles and responsibilities within teams
across the business, to manage significant disruption.
A business disruption team, which includes senior management from relevant
business areas, determines and initiates required action.
A business continuity programme is in place.
Board policy is to maintain target liquidity at £4 million per aircraft, which is
supported by a $500 million (five-year) revolving credit facility provided by a
group of 12 relationship banks. This allows the Group to better manage the
impact of downturns in business or temporary curtailment of activities.
In addition, easyJet holds business disruption insurance.
Critical IT system failure and continuity
of services
easyJet is dependent on a number of key
IT systems and processes.
A loss of critical systems or access to facilities,
including the website, could lead to significant
disruption and could have an adverse
operational, reputational and financial impact.
Link to strategy:
2 3 5
Key systems are hosted across two data centres in two distinct locations, with
failover arrangements between them, or within third-party provider locations,
for which failover arrangements are contractually agreed with them.
IT disaster recovery plans are in place and tested regularly to identify areas
for improvement in resilience.
An IT incident management team is in place to respond rapidly to any
unforeseen incidents that may arise.
If there is a need to relocate critical staff due to the loss of facilities, alternative
sites are available at short notice.
Delivery of projects supporting the
business strategy
The business is undertaking a number of
key projects and programmes to deliver
key elements of the strategy.
If these projects and programmes fail to deliver
the business benefits and cost savings planned,
easyJet could fall short of its planned
financial results.
Link to strategy:
1 2 3 4 5
A Steering Group, consisting of the Executive Management Team and key
senior management, provides challenge to project teams, monitors progress
and ensures that decisions are made at the appropriate level.
Key IT projects or programmes have additional oversight through the IT
Governance and Oversight Committee (a committee of the Board).
Turn to page: 59
for further details
A portfolio management office is in place to oversee delivery of projects and
programmes, and track budgets and realisation of benefits.
A project management framework, which sets out the governance requirements,
key processes and controls, is followed by all projects and programmes.
Third-party service providers
easyJet has entered into agreements with
third-party service providers for services
covering a significant proportion of its
operational and cost base.
Failure to adequately manage third party
performance could adversely affect easyJet's
reputation and its operational and
financial performance.
Link to strategy:
3 5
easyJet has a centralised procurement team which aims to provide the Group
with competitive supply options.
Following the supplier selection process the contract is managed according
to easyJet's supplier management framework, whose key principles cover
defined ownership and accountability, a governance framework and
effective communication.
Alternative service providers are identified and assessed within the major markets
in which easyJet operates.
Robust transition plans are agreed in the event of switching suppliers to enable
an acceptable level of service to be maintained.