The management of risks is fundamental to WPP AUNZ’s business and building shareholder value.
The Board is responsible for determining the Group’s risk management strategy. Management is responsible for implementing the Board’s strategy and developing a risk management and internal control system to manage material business risks, including policies and procedures to identify, manage and mitigate risks across the whole of the Group’s operations. Management reports to the Audit and Risk Committee on the Group’s material risks and the extent to which they believe they are being managed. This is performed annually, or more frequently as required by the Committee. The Board is responsible for seeing that there are appropriate policies in relation to risk management and internal control systems. Policies are designed to identify, assess, address and monitor strategic, operational, compliance, reputational, regulatory and financial risks to enable WPP AUNZ to achieve its business objectives.
The Group uses a number of lines of defence in relation to risk management:
- each operating company undertakes monthly and quarterly procedures and day-to-day management activities to review their operations and business risks, supported by Group policies and reviews by management of each operating segment;
- the operational reviews are communicated to the Chief Executive Officer and Chief Financial Officer in monthly management reports and quarterly reviews and in turn the Board; and
- internal audit reviews are undertaken by Internal Audit and External accounting firms provide an independent review of risk management and internal controls. The reviews are presented to the Audit and Risk Committee.