Key to the effective management of our business and achieving the financial and non-financial performance measures in Vision 2020 has been the development of robust governance processes across all our operations.
This includes our approach to corporate responsibility and the delivery of our strategy for a sustainable business – Responsible Business, Positive Outcomes, which is illustrated in the diagram below:
Summary of RBPO Corporate Governance
An integral element of our approach to corporate responsibility governance is our engagement with clients and the investor community. More on this will be found in 2017 CR Report and our 2018 Annual Report.
Another element integral to our approach to managing non-financial issues is to appreciate the risk, or opportunity, that they present for Kier. In 2018 the Board undertook a detailed review of its appetite for risk set against each of the strategic priorities of Kier.
Risk appetite was mapped against a sliding scale from ‘risk-averse’ to ‘risk- tolerant’ and this informed the development of thresholds to quantify acceptable upper and lower levels of risk for each strategic priority. These projections include projections of the relative cost or impact of risks and are now a clear element of Kier processes.
A detailed description of these processes, which follows the spirit of ISO31000 plan, do, check, act cycle, can be found in the Kier Annual Report 2018.
How we approach certain areas of risk and how we assess these day-to-day is either the responsibility of the Board or delegated as appropriate. These are summarised in the Schedule of Matters Reserved for the Board. The principal purposes of these Group Delegated Authorities are:
- To create a framework within which contract risks are managed in a consistent manner across the Kier Group and which reflects the Board’s appetite for risk.
- To identify, for the benefit of the business, those matters which the Board and the plc Executive Directors consider to be of particular significance, thereby facilitating the management of risk.