For British Land, effective risk management is a cornerstone of our strategy and fundamental to the achievement of our strategic objectives in delivery of long term sustainable returns. We focus on the management of the principal risks facing our business, including those risks that could threaten the Group’s solvency and liquidity as well as identifying emerging risks, whilst at the same time making the most of our opportunities.
Our Risk Management Framework
Our integrated approach combines a top-down strategic risk review with a complementary bottom-up operational process outlined in the diagram below.
The Board takes overall responsibility for risk management with a particular focus on determining the nature and extent of principal risks it is willing to take in achieving its strategic objectives. This is set in the context of the external environment in which we operate – this is our risk appetite. The Audit Committee takes responsibility for overseeing the effectiveness of risk management and internal control systems on behalf of the Board, and also advises the Board on the principal risks facing the Group including those that would threaten its solvency or liquidity.
The Executive Directors are responsible for delivering the Company’s strategy and managing risk. The Risk Committee (which is Chaired by the Chief Financial Officer and consists of all Executive Directors) is responsible for managing strategic and operational risk in achieving the Group’s performance goals.
Whilst responsibility for oversight of risk management rests with the Board, the effective day-to-day management of risk is embedded in all areas of our business and forms an integral part of our core values and how we work. This bottom-up approach ensures potential risks are identified at an early stage, escalated as appropriate and mitigations are put in place to manage such risks. Each business unit maintains a comprehensive risk register which is reviewed quarterly by the Risk Committee, with significant and emerging risks escalated to the Audit Committee for consideration as appropriate.
The Board has undertaken a robust assessment of the principal risks facing British Land. An assessment of potential impact and likelihood together with how they relate to our strategic priorities is detailed in our risk heat map.
Download ‘Managing Risk’ from our Annual Report