Fundamentals of Risk Management

Introduction to risk management 
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Having identified these possibilities, the club will need to look at the risks associated 
with these potential opportunity investments and devise a suitable programme of 
projects to implement the selected strategies. Ensuring that adequate account is taken 
of risk during all of these activities will increase the chances of selecting the correct 
strategy, designing the appropriate tactics and, ultimately, ensuring efficient and 
profitable operations. It is worth noting that projects and programmes of work 
represent the tactics by which strategy is implemented.
Organizations that have effective and efficient tactics, operations and compliance, 
but an incorrect overall strategy will fail. This will be the case, however good the risk 
management activities are at operational and project level. Incorrect strategy has 
resulted in more corporate failures than ineffective or inefficient operations and tactics. 
Nevertheless, the importance of compliance activities cannot be over-emphasized,
as demonstrated by the text box below from the Annual Report and Financial 
Statements of The Rank Group Plc.
The loss of licences could have an adverse effect on our business and profitability and 
prevent us from providing gambling services.
Rank’s gaming licences are fundamental to its operation. In the British part of the 
business, there is a requirement to hold an operator’s licence from the UK Gambling 
Commission (the body responsible for regulating commercial gambling in Great Britain)
in respect of each of the licensed activities undertaken. Additionally, it is necessary to hold 
premises licences from the relevant local authority where each venue is situated, one for 
gambling activities and one for the sale of alcohol.
Rank has a dedicated compliance function that is independent of operations and a 
separate internal audit function that is independent of both operations and the compliance 
function. Rank maintains a strong and open relationship with the UK Gambling Commission 
and the other relevant regulatory bodies in all jurisdictions in which we operate.
The Rank Group Plc
Annual Report and Financial Statements 2015
Importance of compliance