Principal risks and uncertainties

Continued focus on risk management.

Aegis faces a range of market, strategy, financial, legal, operational, corporate responsibility and human resources risks. These risks are continually reviewed with a view to improving our internal control framework to help mitigate them, where possible. Listed in the following pages are what we believe to be the principal risk factors and uncertainties that we have faced during the period, which we are still likely to face well into the future, and our strategies for managing them.

Risk assessment and communication /

We increased the standard of our risk assessment and communication procedures in 2010, with an improved reporting framework now in place. This has been achieved through the setting up of three separate Risk Committees at Aegis Group, Aegis Media and Synovate to ensure that effective risk management policies and procedures are established throughout Aegis. These Committees report to the Group CEO and the Audit Committee and provide a forum for discussion of risks faced by Aegis, the development of risk assessment techniques and the consideration and approval of risk management action plans for such risks.

The Committees are authorised by the Audit Committee to investigate any matter that they regard as relevant to their duties and to seek any information they require from any employee of Aegis. The Committees’ authority extends to all relevant matters relating to all Aegis companies where this has an impact on the Group as a whole, with their main duties and responsibilities including:

  • Assessing the major risks facing the business and the resultant necessary risk mitigation approach and appropriate management responses

  • Maintaining a record of all risks and how they are being mitigated in a risk register

  • Assigning risk champions for risks identified in the risk register with responsibilities for any actions required to address potential weaknesses in such risks and monitoring progress for the implementation of such actions

  • Taking appropriate actions in relation to recurring findings from Internal Audit activity at the Group’s businesses around the world

  • Providing an annual summary to the Board and Audit Committee on key risk issues and management of these issues

  • Reviewing risk policies on a revolving basis to ensure that they are kept up-to-date

  • Annually reviewing the Group’s insurance arrangements for input to changes

  • Developing risk management policies and procedures to assist in improving standards of risk management throughout the Group.

The Group Risk Committee in particular provides advice on the co-ordination of risk management strategies between the three Risk Committees with the following objectives:

  • To co-ordinate activities to obtain a more effective risk management process from existing resources

  • To prioritise and accelerate those risk management strategies that are critical to the achievement of corporate objectives

  • To ensure that actions required are given an appropriate level of sponsorship

  • To develop risk management as part of the culture of the Group.

Continue