Our Executive Board has overall responsibility for establishing systems to control risk and for reviewing and measuring their effectiveness. Senior management has the day-to-day responsibility for implementing the systems and for monitoring their impact.
We’ve designed these systems to identify and manage the most material risks for our business, such as the risk of material misstatement in our financial statements or the risk that we fail to achieve our business objectives. These systems are implemented by our Risk Council, and our risk and quality function and our Internal Audit Team (IAT), as well as risk and quality teams across our business, to guide our people, and to embed a culture of risk awareness and quality focus throughout the firm.
We have a detailed risk register which we publish each year, which focusses primarily on the risk to our reputation, information security, independence and regulatory compliance. We measure and share our performance on many of these with our stakeholders in our annual report and sustainability scorecard.
Sustainability risks, whether strategic or operational, are treated in the same way as other business risks, and in proportion to them, as part of our overall process.
Our main sustainability risk relates to ensuring that sustainability is embedded into our services, and achieving our corporate sustainability objectives. We also keep an eye on climate change-related risks, and have internal and external assurance processes to ensure our sustainability reporting is transparent and reliable.
Meanwhile, we have rigorous procedures to help us understand any risks that may arise in relation to existing or potential client work, including whether it meets our standards of integrity.
While we have a reputation for quality, given the size of our firm, we do occasionally fall short of our own standards. When this happens, we talk about the issues with the relevant parties and try to resolve them. And, we review issues independently – so we can learn lessons and make changes in the relevant part of our business, if required.
The focus areas section of our site set out more information on our specific sustainability risks and responses.