Governance and Risk Management
Assessment of CSR risks is fully integrated into our risk and controls assessment processes, the results of which are reviewed by our internal audit function. Facilitated by our internal audit function, a Group risk assessment is conducted every six months. In addition to commercial and financial risks, this process considers all material risks to the business covering safety, customer, employee and environmental management. A similar six-monthly risk assessment process is also conducted at divisional level by the UK Rail, UK Bus and North American boards.
The UK Bus and UK Rail operating companies and the North American divisions complete a controls assurance questionnaire on an annual basis. This provides the business with a mechanism for checking that the required controls are in place and facilitates a business risk analysis. The process also includes consideration of safety, customers, employees and environment risks.
This year additional questions have been incorporated relating to the management, checking and transfer of CSR data. This is part of improving our understanding of the quality of our existing data management systems.
Our key CSR risks remain:
- safety and security;
- recruiting and retaining employees;
- delivering customer service levels; and
- responding to regulatory change and fuel price increases.
We continue to enhance our safety programme through the development of the IPP and have significantly strengthened our approach to management of security risks through the establishment of the Group security function.
Our fuel efficiency programme seeks to optimise fuel use across the business with the dual aim of reducing costs and meeting the commitments of our Climate Change Strategy (link opens in a new window). Through development of our business strategy we seek to effectively manage all our CSR risks such that they have no adverse effect on our performance.