BAE-annual-report-2014

Strategic Report
BOARD
Overall responsibility for risk management
Monitoring
AUDIT COMMITTEE
Operational Assurance Statement Risk Register
Non-financial Risk Register
CORPORATE RESPONSIBILITY COMMITTEE
Non-financial Risk Register
Monitoring and reporting
Monitoring and reporting
Monitoring and reporting
EXECUTIVE COMMITTEE
Operational Assurance Statement Risk Register
Non-financial Risk Register
Monitoring and reporting
BUSINESSES
Integrated Business Plan – Core Business Process*
Annual long-term strategy and five-year plan for each business
Operational Assurance Statement – Mandated Policy*
Six-monthly management self-assessment of compliance with the Operational Framework and summary of key risks
Chief Executive’s Business Review – Core Business Process*
Quarterly top-level review of the key operational, financial and non-financial performance issues within the business, and significant forthcoming bids and events
Quarterly Business Review – Core Business Process*
Quarterly management review of the performance of each of the Group’s businesses against their objectives, measures and milestones
Lifecycle Management Contract Review – Core Business Process*
Monthly management review of project performance and issues to ensure that appropriate decisions and actions are taken
1. IDENTIFICATION
Financial and non-financial risks recorded
in risk registers
4. MITIGATION
Risk owners identified and action plans implemented
Robust mitigation strategy subject to regular and rigorous review
Monitoring and reporting
BUSINESS RISK
Risk Management Policy – Mandated Policy*
2. ANALYSIS
Risks analysed for impact and probability
to determine gross exposure
3. EVALUATION
Risk exposure reviewed and risks prioritised
* As defined in the Group’s Operational Framework.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
P58 Operational Framework
BAE Systems
Annual Report 2014
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