Risks and risk management Risk management During the year we identified three risks where the potential impact has increased. Climate change and environment, cyber Our actions to address these security and supply chain disruption are risks risks are reflected in our having both a national and global impact. strategy and the Board’s OUR APPROACH activities through the year. ” Whilst we have formal processes for identifying, assessing and reviewing risk, as described in the table opposite, the Board as a whole takes responsibility for the management of risk throughout the business. In addition, our Audit and Risk Committee oversees the risk management process as part of its activities. PROCESS FOR PREPARING CONSOLIDATED FINANCIAL PROCESSES UNDERPINNED BY CULTURE AND STATEMENTS SHARED VALUES The Group has established internal control and risk We believe that risk is best managed by a combination of management systems in relation to the process for the following: preparing consolidated financial statements. • Formal risk management processes as described in this The key features of these systems are: report. • The Board and senior management leading by • Management regularly monitors and considers example. developments in accounting regulations and best • Alignment through promoting colleague shareholding practice in financial reporting and, where appropriate, in Dunelm. reflects developments in the consolidated financial statements. The external auditor also keeps the Audit • Embedding our purpose, culture and shared values. and Risk Committee appraised of these developments. • The Audit and Risk Committee and the Board review the draft consolidated financial statements. The RISK MANAGEMENT FRAMEWORK Audit and Risk Committee receives reports from The Board confirms that: management and the external auditor on significant judgements, changes in accounting policies, changes • There is an ongoing process for identifyg, evaluating andin in accounting estimates and other pertinent matters managing the principal risks faced by the Group, including relating to the consolidated financial statements, to identify emerging risks. and provides robust and independent challenge to • The systems have been in place for the year under review management where appropriate. and up to the date of approval of the Annual Report and • The full-year financial statements are subject to financial statements. external audit and the half-year financial statements • They are regularly reviewed by the Board. are reviewed by the external auditor. • The systems accord with the guidance to audit committees issued by the Financial Reporting Council dated April 2016. 76 DUNELM GROUP PLCANNUAL REPORT & ACCOUNTS 2021