The Board has two main responsibilities in relation to risk.
The first is to determine the Group's risk appetite and communicate this across the organisation. The second is delegated to the Audit and Risk Committee, is to oversee the management process for the identification, assessment and mitigation of risk across the Group.
A Group Risk policy is in place which supports the Board in fulfilling those responsibilities and serves to reinforce the risk review processes embedded within the businesses.
Effective management of risk and opportunity is essential to the protection of Essentra’s reputation and the delivery of sustainable shareholder value. The Board of Directors is responsible for determining the risk attitude of the Company and for communicating to the organisation what constitutes acceptable risk-taking. The Board, supported by the Audit Committee, also oversees the management process for the identification, assessment and mitigation of risk across Essentra.
A Group Risk Committee (“GRC”) chaired by the Chief Executive has been constituted. Meetings will take place on at least a quarterly basis. The Board receive regular reporting from the Chief Executive in his capacity as GRC Chair to enable the Board to challenge and review the GRC’s views on the Principal Risks and emerging risks, as an important part of fulfilling its responsibilities to determine the nature and extent of the risks the Company is willing to take in meeting its new strategic objectives. The Chair of the Board and the Audit and Risk Committee Chair receive copies of the minutes of each meeting. The Audit and Risk Committee engages directly with individual enabling functions and divisional businesses, including deep dive reviews, as part of fulfilling its oversight responsibilities on the risk management processes.