Our approach and appetite for risk

Risk is an inherent part of our business operations, core to aligning to our Purpose and we approach it with the same deliberate, strategic consideration as other aspects of the business. 

We hold annual top-down or bottom-up reviews that provide information and evaluations that the Risk Management Committee uses alongside the Risk Appetite and Risk Velocity ratings for our Principal Risks to create an effective system for monitoring, planning and developing our Group-wide approach and culture regarding risk.

 

Managing Risks

A flow chart of Spirax Group's approach to risk management

Principal Risks

The year-on-year trend for each Principal Risk is assessed and updated and Risk Appetite and Risk Velocity ratings validated for each of the Principal Risks.

Our Principal Risks are: 

  1. Economic and political instability
  2. Significant exchange rate movement
  3. Cybersecurity
  4. Loss of manufacturing output at any Group factory
  5. Failure to realise acquisition objectives
  6. Loss of critical supplier
  7. Breach of legal and regulatory requirements (including ABC laws)
  8. Inability to identify and respond to changes in customer needs