47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 58
A.G. BARR p.l.c. Annual Report and Accounts 2025
R I S K M A N AG E M E NT CO N TI N U ED
The Board carries out a robust assessment of the
Group’s emerging risks at least once each year
using a horizon-scanning approach together
with internal and external insights. The purpose
of these assessments is to identify key emerging
risks for further evaluation, monitoring and action
planning. The new structure and processes
implemented last year to improve the
identification and management of emerging
risks for the Group continued during the year,
linked to the Board’s strategic planning process.
Standalone emerging risks and opportunities
registers are in place for each of Barr Soft Drinks,
FUNKIN and MOMA; emerging risks are captured
on the relevant risk register and are subject to
annual review by a group comprising senior
executives from across the business, including the
CEO and Finance Director. Recommendations
arising from that review are presented to the
Board and the output therefrom informs the
Group’s strategy review presented to the Board
each year. The Risk Committee reviews the
emerging risk registers at least annually.
Emerging risks remain on the relevant emerging
risk register until they are captured on an
appropriate risk register or are no longer
deemed to be an emerging risk. The Board has
completed a robust assessment of the Group’s
emerging risks, including those related to climate
change and technology, during the period.
Risk control assurance
Internal audit work is undertaken by Ernst &
Young, an independent organisation which
develops an annual internal audit plan having
reviewed the Group’s risk register and following
discussions with the external auditors,
management and members of the ARC.
During the year the ARC has reviewed reports
covering the internal audit work. This has
included assessment of the general control
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environment, identification of any control
weaknesses and quantification of any associated
risk, together with a review of the status of
mitigating actions. The ARC has also received
reports from management in relation to specific
risk items, together with reports from the external
auditors, who consider controls to the extent
necessary to form an opinion as to the truth
and fairness of the financial statements.
The Group’s internal control and risk management
systems are designed to manage rather than
eliminate the risk of failure to achieve business
objectives and can provide only reasonable
but not absolute assurance against material
misstatement or loss.
The report of the ARC can be found on pages
81 to 84.
Principal risks and uncertainties
The Board has carried out a robust, systematic
assessment of the principal risks facing the Group
during the period, including those which would
threaten its business model, future performance,
solvency, liquidity or reputation. The table below
sets out the Group’s principal risks as determined
by the Board, the link to the Group’s strategic
objectives, the net risk ratings, the net risk
movement from the prior year and examples of
corresponding controls and mitigating actions.
The Group’s principal risks have continued to
evolve during the year against the backdrop of a
challenging and uncertain external environment.
Management has continued to focus on the
implementation of appropriate mitigating actions
and controls, in line with the Group’s risk appetite.
The principal risks set out in the table below,
prioritised on a net risk basis, represent the
Group’s current risk profile – these are not
intended to be an exhaustive list of all risks
facing the Group.
