Savills plc 2012 Annual Report - (PDF) - Investor relations

Corporate Governance reportcontinued−a programme of assurance activities which assesses theeffectiveness of the Group’s internal controls in respect ofrisks which includes:• a programme of internal audits undertaken inaccordance with an annual risk based plan approvedby the Audit Committee. The plan is designed to ensurethat internal audit reviews are focused on priority controlsacross the Group to provide both independent reviewand challenge on the effectiveness of these controls,and the promotion of good practice and consistencyin their development;• compliance programmes within the Group’s regulatedbusinesses in support of the Group’s commitment toconduct its business responsibly and in accordancewith all laws and regulations to which its businessactivities are subject; and• an annual self assessment and certification bymanagement of the existence and effectiveness ofthe key controls within each of the Group’s operatingsubsidiaries. The results are collated for review andchallenge by the Group Risk Committee and onwardreporting to the GEB and Audit Committee.The Audit Committee, on behalf of the Board, has reviewed theeffectiveness of the system of risk management and internalcontrol. In performing its review of effectiveness, the AuditCommittee considered the following reports and activities:−−−−−internal audit reports on the review of the controls acrossthe Group and the monitoring of management actions arisingfrom these reviews;management’s own assessment of the performance of thesystem of risk management and internal control during 2012;invitation of the Heads of the Principal Businesses and theChief Financial Officers of those businesses to present onthe operation of the system of risk management and internalcontrol within their businesses;reports from the Group Director of Risk Management &Internal Audit including reporting on Group wide riskassessment activity and annual self assessment findings; andreports from the external auditors on any issues identifiedduring the course of their work.Whistle-blowingThe Group encourages staff to report any concerns which theyfeel need to be brought to the attention of management. Whistleblowingprocedures, which are published on the Group’s intranetsite, are available to staff who are concerned about possibleimpropriety, financial or otherwise, and who may wish to ensurethat action is taken without fear of victimisation or reprisal.Going concernThe Group’s business activities, together with the factors likely toaffect its future development, performance and position are setout in the Group Chief Executive’s review on pages 14 to 22.The financial position of the Group, its cash flows, liquidity positionand borrowing facilities are described in the Financial review onpages 24 and 26. In addition, Note 3 to the financial statementsincludes the Group’s objectives, policies and processes formanaging its capital, its financial risk management objectives,details of its financial instruments and hedging activities; and itsexposures to credit risk and liquidity risk.The Group has considerable financial resources, includinga £65m committed revolving credit facility that runs to 31 March2014, together with a broad spread of businesses across differentgeographic areas and sectors. As a consequence, the Directorsbelieve that the Group is well placed to manage its business riskssuccessfully despite the current uncertain economic outlook.After making enquiries, the Directors have a reasonableexpectation that the Company and the Group have adequateresources to continue in operational existence for the foreseeablefuture. Accordingly, they continue to adopt the going concernbasis in preparing the Report and Accounts.On behalf of the BoardPeter SmithChairman13 March 2013The Board, having reviewed the effectiveness of the systemof internal control, can confirm that necessary actions havebeen, or are being taken to remedy any significant failings orweaknesses identified.42 Savills plc Report and Accounts 2012