Risk Management
RPS Group Risk Analysis
RPS supplies a wide range of services to
many sectors of the economy in a
significant number of countries.This gives
rise to a range of potential risks that need
to be individually recognised, assessed and
effectively managed. Due to the robust
structure of the business the management
of these risks is not an additional function
to the business, but is treated as an
integral part of the way we operate.
Executive Directors review the risks the
Group may be exposed to and report to
the Board all major risks identified.
The Group has a well-established and embedded system of internal control and risk management that is designed to safeguard shareholders’ investment, as well as the Group’s assets and reputation. Whilst the Group Board has overall responsibility for the Group’s system of internal control and for reviewing its effectiveness, it is the role of management to implement the policies on risk and control.
The principal risks identified by the Group can be described under the following categories:
- Business Strategy - the risk of not delivering the Group’s long-term strategy. Principal risks of the Group include loss of competitive position and strategic risks in relation to specific activities.
- Business Continuity - the risk that in the event of an adverse occurrence the business operations will not be able to operate. Main areas of risk here are failure of IT systems and the recruitment and retention of key staff.
- Financial/Commercial - the risk of performance falling short of expectations.This includes reputational risk linked to quality of work and liability risk not covered by professional indemnity insurance.
- Compliance - the risk of failing to comply with all relevant legislation and regulations. Main areas of risk to the Group include legal action from compliance failures.
- Health, Safety and Environment - the risk related to the safety of staff, clients, sub-contractors, members of the public and the environment.
Business Strategy
The Group’s strategy seeks to ensure
continuous improvement in the range and
quality of our services and our financial
performance by:
- operating in markets where we can add value to our clients’ activities;
- endeavouring to achieve leadership in those markets; and
- making acquisitions of quality businesses in order to extend our expertise and geographical presence.
Successful implementation of the strategy requires the Board to identify appropriate markets and how to operate in them successfully. Each year the Board sets itself a series of specific objectives and priorities. Progress against these is measured on a regular basis.
The Executive Committee reviews and has to approve all acquisitions before any binding commitment is made. For acquisitions with an enterprise value in excess of £20 million the full Group Board approval is required prior to any binding commitment being made.
The Executives have developed comprehensive methods of evaluation of potential acquisitions, including the legal framework within which businesses are acquired and methods of integration.
Business Continuity
Failure to recruit and retain qualified and
talented staff can disrupt the Group’s
ability to win new contracts and/or
execute contracts effectively.
Each of the Group’s businesses has, as a management priority, the successful implementation of the recruitment and retention strategy and they do this in manners appropriate to the markets they operate in. At Group level advice is provided to the businesses about recruitment techniques, remuneration strategies and people management. In addition share schemes are put in place to assist staff motivation and retention.
RPS Technology Services (RPSTS) manages all the Group’s IT systems although some detailed functions are carried out locally on site. Each year RPSTS produces a plan for the improvement of the Group’s systems.The Board approves that plan and allocates the appropriate budget.The plan, when necessary and appropriate, includes measures designed to ensure reliability and resilience within the Group’s systems.