Fundamentals of Risk Management

British Land: Our assessment of risk is a cornerstone
Internally we have undertaken some significant change projects to improve the operational 
effectiveness and efficiency of our business. While this inevitably presents a degree of operational 
risk, we believe we have the right people in place to manage change effectively. In the current year, 
we have been conscious of the increased risk of terrorist activities at our assets and have tested our 
crisis response plan to ensure it is robust.
At British Land, we take the view that our assessment of risk is a cornerstone of our strategy and 
our embedded risk management is fundamental to its delivery. Our integrated approach combines
a top-down strategic view with a complementary bottom-up operational process.
The top-down approach involves a review of the external environment in which we operate. This 
guides assessment of the risks which we are comfortable taking in pursuit of our performance 
objectives – this is our risk appetite. This evaluation guides the actions we take in executing our 
strategy. Key risk indicators (KRIs) have been identified for each of our principal risks and are used
to monitor our risk exposure. The KRIs are reviewed quarterly by the risk committee to ensure that
the activities of the business remain within our risk appetite.

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Risk assessment
The bottom-up approach involves identifying, managing and monitoring risks in each area of our 
business. This way, risk management is embedded in our everyday operations. Control of this process 
is provided through maintenance of risk registers in each area. These risk registers are aggregated 
and reviewed by the risk committee, with significant and emerging risks escalated for board 
consideration as appropriate.
Edited extract from British Land PLC
Annual Report and Accounts 2015