Fundamentals of Risk Management

www.theirm.org
International Standard ISO 31000:2009 Risk Management: Principles and
Guidelines, 
www.iso.org
Pullan, P and Murray-Webster, R (2011) A Short Guide to Facilitating
Risk Management,
 www.gowerpublishing.com
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Introduction to risk management
12
PART ONE cAsE sTUDIEs
Rank Group: How we manage risk
Rank operates a comprehensive risk management methodology which is closely integrated to its 
management structure to provide clear oversight and governance of the risks which are considered 
to be material to its business, and to maintain continual surveillance of its operating environment for 
emerging risks. The approach endeavours to ensure that a clear risk appetite is set that balances 
risks and opportunities to contribute to the achievement of the group’s strategic objectives.
The board has responsibility for the risk framework and establishing the group’s risk appetite, as 
well as ensuring that risk controls are built into management’s approach to operations. The audit 
committee holds the responsibility for assessing the effectiveness of the risk management systems 
which are in place and undertaking independent review of the risk mitigation plans which have been 
designed for material risks.
Rank’s risk committee meets on a monthly basis with a remit to conduct a thorough review of the 
risk register and to ensure that management are working effectively to identify and manage risks as 
they arise and on a continual basis. Working sessions of the committee are held with departmental 
and divisional management to ensure that risks are being identified in a timely manner and effective 
action plans put into place. This approach ensures that risk is identified in both a ‘top-down’ and a 
‘bottom-up’ manner from the various management levels of the organization to give assurance that 
risk registers are comprehensive.
Group internal audit works in support of the risk committee to help manage risk identification and 
conduct independent reviews of both the business’s risks and its progress in performing the mitigating 
action plans agreed for any relevant risks, the status of which is reported to the risk committee monthly.
Edited extract from The Rank Group Plc
Annual Report and Financial Statements 2015