Annual Report 2015
Risk management is discussed at
Board level both in terms of the
Group and its businesses on a regular
basis. As detailed above, the Group’s
individual businesses are required
to monitor risk and its management
with any significant changes in
business risk and any subsequent
procedures or controls to mitigate
the risk being reported to the Audit
Committee.
A description of the Group’s principal
risks and uncertainties can be found
in the Financial Review section of the
Strategic Report on page 31.
– External Independent Auditor
The Board, assisted by the Audit
Committee, reviews each year the
external independent auditor’s
performance, independence,
effectiveness and fees including the
level of non-audit services and fees.
50
In evaluating the external
independent auditor, the Audit
Committee assesses the calibre of
the external audit firm, the audit
scope and plan which is agreed in
advance with the Audit Committee
and the level and nature of audit
communications, including the
reporting to the Audit Committee of
the audit results.
Going Concern
The Directors consider each year the
appropriat eness of the assumption of
preparing the financial statements on
a going concern basis. This is based
upon a review of the Company’s and
the Group’s business plan, budget,
financial forecasts, investment
programme, forecast compliance
with borrowing covenants, availability
of undrawn borrowing facilities and
surplus cash to provide liquidity and
also based on the Group’s strong
track record of renewing or replacing
the Group’s borrowing facilities when
they mature.
Relations with Shareholders
The Board ensures that a regular and
detailed dialogue with shareholders
takes place. This is achieved through
regular management and Board
meetings that shareholders attend
and through other less formal
communication.