The Board is responsible for approving and reviewing the effectiveness of the Group’s system of internal control and risk management.
To strengthen the relationship between risk management and strategic and operational planning, the Chief Executive Officer, through the Executive Leadership Team (ELT), has principal responsibility for risk management.
Brambles operates a company-wide risk management framework, the objectives of which are as follows:
- To incorporate effective risk management as part of Brambles’ strategic planning process;
- To require business operating plans to address the effective management of key risks;
- To develop internal audit plans to concentrate efforts on providing assurance on the viability and value of risk mitigation/management processes;
- To embed a stronger risk management culture;
- To improve allocation of capital to reflect business risks;
- To seek competitive advantage through increased certainty of achieving agreed organisational and business objectives; and
- To continue to fulfil governance requirements for risk management.
Brambles' corporate centre and each of the Group’s operating segments have a Risk & Control Committee, which reports to the Executive Leadership Team. These operating segment Risk & Control Committees are chaired by the relevant operating segment Group President and include key operational management as members. The Brambles corporate Risk & Control Committee is chaired by the Chief Financial Officer. Its members include key functional heads. Each Risk & Control Committee conducts an in-depth review of its relevant risk profile on a regular basis. The relevant Group President reviews the risk profile and accompanying mitigation plans before these profiles and mitigations plans are consolidated into the Group-level risk profile.
The risk profiles and mitigation plans for Brambles' corporate, the operating segments and the Group as a whole are evaluated by the Executive Leadership Team, with support from the Group Vice President, Risk & Assurance. The Executive Leadership Team, through the Chief Executive Officer, prepares a risk report to the Board twice each year, which includes a review of the Group’s risk profile, mitigation factors and emerging risks. Legal obligations and the reasonable expectations of stakeholders – such as shareholders, customers, employees, subcontractors, suppliers and the community in general – are taken into account when preparing and updating mitigation plans.