REG - Burberry Group PLC - Annual Financial Report <Origin Href="QuoteRef">BRBY.L</Origin> - Part 2

BurberryAnnouncement

06/06/2016 09:50

- Part 2: For the preceding part double click  ID:nRSF2933Aa 

of regulations relevant to their roles. Assurance processes are in place to monitor   
 in which the Group operates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  compliance in                                                                                                                                                             
 The pace of change and the consistency of application of legislation can vary significantly across these jurisdictions, particularly in an environment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        a number of key risk areas, with results being reported to the management Risk Committee and Board Audit Committee.                                                       
 where public sector debt is often high and tax revenues are falling.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 Change in level of riskNo material change                                                                                                                                                                                                                                     Strategic linkAll Core Strategies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
 Failure by the Group or associated third parties                                                                                                                                                                                                                              A failure to act appropriately could result                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     A number of initiatives are in place, led by the Corporate Responsibility function. These include the continuing activities set out in the Build our Culture section on   
 to act in accordance with ethical and environmental standards.                                                                                                                                                                                                                in penalties, adverse press coverage and reputational damage with a resulting drop                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              pages 44 to 46.                                                                                                                                                           
                                                                                                                                                                                                                                                                               in sales and profit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 Change in level of riskNo material change                                                                                                                                                                                                                                     Strategic linkInspire with the Brand                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 Over-reliance                                                                                                                                                                                                                                                                 The Group relies on a number of vendors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         The Group continues to evolve its supply chain organisational design to develop its manufacturing base to reduce dependence on key vendors.                               
 on key vendors.                                                                                                                                                                                                                                                               in key product categories. Failure of these businesses to deliver products or services would have a significant impact on business operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 Change in level of riskNo material change                                                                                                                                                                                                                                     Strategic linkInspire with the Brand, Realise Product Potential                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 The Group's IT systems and operational infrastructure are critical to its operation and the delivery of products and services to its consumers. Increasingly, technology is evolving to                                                                                       A failure in these systems or a denial of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       The Group's IT systems and infrastructure received substantial Audit Committee focus during the year.A number of controls to maintain the integrity and efficiency        
 stream major events and to communicate through social media.                                                                                                                                                                                                                  service could have a significant impact                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         of the Group's IT systems are in place, including recovery plans which would be implemented in the event of a major failure. The IT disaster recovery plans are tested on 
                                                                                                                                                                                                                                                                               on the Group's operations and reputation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       a regular basis. IT security is continually reviewed and updated and third-party IT security specialists are used to regularly test these controls.The Group has continued 
                                                                                                                                                                                                                                                                               The Group also relies on a small number of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      to strengthen its internal digital and IT teams and continues to facilitate knowledge transfer to internal resources.                                                     
                                                                                                                                                                                                                                                                               vendors of specialist digital and IT services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 Change in level of riskNo material change                                                                                                                                                                                                                                     Strategic linkAll Core Strategies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 The Group operates in                                                                                                                                                                                                                                                         Seizure of assets or staff. Business associate practice that is inconsistent with the Group's ethical standards and the UK regulatory environment. Increased operational costs due to country-specific processes driven by the operating or regulatory environment.                                                                                                                                                                                                                                                                                                                                                                                                             The Group uses the services of professional consultants to advise on legal and regulatory issues when entering new markets, to undertake due diligence and to monitor     
 a number of emerging markets which are typically more volatile than developed markets, and are subject to changing economic, regulatory, social and political developments that are beyond the Group's control. Infrastructure and services also tend to be less developed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   ongoing developments. Where appropriate, the Group seeks to work with franchisees or partners who compensate for its relative lack of experience in a number of these     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               markets.                                                                                                                                                                  
 Change in level of riskNo material change                                                                                                                                                                                                                                     Strategic linkInspire with the Brand, Optimise Channels, Unlock Market Opportunity, Pursue Operational Excellence                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
 
 
The Group uses the services of professional consultants to advise on legal and
regulatory issues when entering new markets, to undertake due diligence and to
monitor ongoing developments. Where appropriate, the Group seeks to work with
franchisees or partners who compensate for its relative lack of experience in
a number of these markets. 
 
Change in level of riskNo material change 
 
Strategic linkInspire with the Brand, Optimise Channels, Unlock Market
Opportunity, Pursue Operational Excellence 
 
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