Our risks and opportunities
We have refreshed our approach to risks and opportunities so that it aligns better with our strategic aspirations.
Our new approach is more inclusive and long term. It aims to protect and enhance value by not only managing risk but also encouraging innovation and improving performance.
Risk management approach
Our risk management processes have been redefined to clarify the link between risks and opportunities and the group's strategic pillars. Our risk processes support our ability to identify and mitigate the risks related to our transformational strategic business objectives.
Integrated risk management
Our revised risk policy and standards align to the group's new operating model and core business focus. The revisions to risk appetite and risk thresholds are linked to our strategic aspiration and will be used to guide management in their decision making.
The strategic challenges and associated strategic risks are disclosed with our strategic aspirations, our strategic responses and headline progress for the year in Our strategy.

The impact of, and our response to, COVID-19
We play a critical role in the supply of essential services and products in the many countries in which we operate; and we continue to focus on ensuring that people receive medication and food, as well as other essentials.
Our primary duty during the pandemic is to protect our employees, clients, principals, customers and suppliers from COVID-19 infection. Our stringent protective measures remain in place and include strict access control, as well as rigorous hygiene, cleaning and disinfecting procedures, with dedicated resources in place to monitor COVID-19 related risks at each operation.
Throughout the COVID-19 pandemic we have worked hard to maintain a sound financial position, generate cash, tightly manage costs and to execute our strategic imperatives. We will continue to address the risks presented by COVID-19 while delivering strategic progress to build a resilient and sustainable business with a clear purpose in a post-pandemic world.
Risk management process

The first step is to identify threats and opportunities against clearly defined business goals. Given our strategic aspirations, what is the broad context of risk and opportunity in which we operate? And which risks and opportunities relate to which particular goals and targets?

In the second step we home in on the detail, analysing and evaluating the risks and opportunities identified in the first step. Given our strategic ambitions, which are the truly significant risks (and opportunities) worth expending time and resources on?

Here we monitor, measure, review and assure the risks identified in the previous steps. This is about active management of risks and opportunities, with the associated tasks and decisions demanded of management.
Key risk categories
Materiality, business principles and values
Risk management must support how we 'live' our values and abide by our business principles.
ESG
Risk management process must integrate ESG strategy and related initiatives.
Health and safety
Integrate health and safety risk management processes into all levels of business to endeavour to cause Zero Harm through our activities.
Client contracting
We must ensure that possible risk and potential reward are carefully considered in client contracting.
Business continuity management
A holistic approach to business continuity management that reduces threats to business operations and increases organisational resilience.
Asset protection
Focuses on safeguarding the wellbeing of our employees, as well as the preservation of Imperial assets and that of our clients, principals and customers, both onsite as well as en route.
Subcontractors
Subcontractors are required to meet Imperial's operational standards, service level requirements, and to uphold Imperial reputation and perceived brand quality.
Legal and standards compliance
We have a zero-tolerance approach to non-compliance to legal and other statutory requirements.
Strategic planning and target setting
Accurate and timely risk information is used to inform business planning, budgeting and forecasting.
Digital and IT
Digital and IT governance and management is part of the overall enterprise governance and risk framework.
Mergers and acquisitions
Due diligence process for potential mergers and acquisition targets is undertaken to assess whether a particular merger/acquisition will meet the anticipated strategic and/or financial objectives.
Healthcare regulations
Identify and mitigate key risks specific to the healthcare industry (including pharmaceutical products and medical devices industry).
Top operating risks
Our methodology assigns a numerical value to risks and opportunities to help management prioritise the relevant ones.
Short-term risks
Consequence |
Impact |
Mitigation |
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1. The ongoing impact of COVID-19
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2. Protection of margins and revenue
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3. Exchange rate volatility
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4. Non-performing businesses
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5. Political/social risks and civil unrest
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6. Competition
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7. Skills shortage
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8. Global shortage of semiconductors
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9. Cyber security and privacy
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10. Environmental and climate change impacts
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