REG - Burberry Group PLC - Annual Financial Report <Origin Href="QuoteRef">BRBY.L</Origin> - Part 3

BurberryAnnouncement

06/06/2017 10:00

- Part 3: For the preceding part double click  ID:nRSF2724Hb 

                                    Specialist teams at corporate and regional level, supported by third-party             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         specialists where required, are responsible                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         forensuringemployeesareawareofregulationsrelevantto theirroles.Assurance processes     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         are in place to monitor compliance in                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         anumberofkeyriskareas,withresultsbeingreportedtothe management Risk Committee and      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Board AuditCommittee.                                                                  
 in anenvironment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        TheGroup'sBrexitSteeringCommitteewillkeepunder                                         
 where publicsector                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      review any regulatory requirements arising fromBrexit.                                 
 debt is often highand                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 tax revenues arefalling.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 Change in level ofrisk                                                                                                                                                                                                                      Strategiclink                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 No materialchange                                                                                                                                                                                                                           All keystrategies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 FailurebytheGroupor                                                                                                                                                                                                                         A failure to act appropriately couldresult                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Anumberofinitiativesareinplace,ledbytheCorporate                                       
 associated thirdparties                                                                                                                                                                                                                     inpenalties,adversepresscoverageand                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Responsibility function. These include thecontinuing                                   
 to act inaccordance                                                                                                                                                                                                                         reputational damage with a resultingimpact                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  activities set out in the Responsibility section onpages                               
 with ethicaland                                                                                                                                                                                                                             on revenue andprofits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      47 to51.                                                                               
 environmentalstandards.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
 Change in level ofrisk                                                                                                                                                                                                                      Strategiclink                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 No materialchange                                                                                                                                                                                                                           All keystrategies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 Over-reliance                                                                                                                                                                                                                               TheGroupreliesonanumberofvendors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            TheGroupcontinuestoevolveitssupplychainorganisational                                  
 on keyvendors.                                                                                                                                                                                                                              inkeyproductcategories.Failureofthese                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       designtodevelopitsmanufacturingbasetoreduce                                            
                                                                                                                                                                                                                                             businesses to deliver products orservices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   dependenceonkeyvendors.TheGroupisextendingits                                          
                                                                                                                                                                                                                                             would have a significant impacton                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           business continuity planning framework to key vendorsin                                
                                                                                                                                                                                                                                             businessoperations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         specific business operations to minimise the impact ofan                               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         incident affecting thosevendors.                                                       
 Change in level ofrisk                                                                                                                                                                                                                      Strategiclink                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 No materialchange                                                                                                                                                                                                                           Product Focus, Productive Space,E-Commerce                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                             Leadership                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
 The Group'sITsystems and operational infrastructure are critical to its operationandthe delivery of products, services and market communicationstoitsconsumers. Change in level of risk No materialchange                                   A failure in these systems could have a significant impact on the Group's operations andreputation.The Group also relies on a small number of vendors of specialist digital and IT services, thereby concentrating the impact of thisrisk.   StrategiclinkAll keystrategies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 TheGroup'sITsystemsandinfrastructurecontinuetoreceive substantial Audit                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Committeefocus.A number of controls to maintain the integrity                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         andefficiencyoftheGroup'sITsystemsareinplace,includingrecoveryplans                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         whichwouldbeimplementedintheeventofamajorfailure.Theserecoveryplansaretestedonaregula   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         rbasis.The Group has continued to strengthen its internal Digital                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         andITteamsandactivelymanagesdependencyonexternal specialistservices.                   
 The Group operatesin                                                                                                                                                                                                                        Typicalpotentialrisksfacedinthesemarkets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    The Group uses the services of professional consultantsto                              
 a number ofemerging                                                                                                                                                                                                                         include:seizureofassetsorstaff,business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     adviseonlegalandregulatoryissueswhenenteringnewmarkets,                                
 markets whichare                                                                                                                                                                                                                            associate practices that areinconsistent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    toundertakeduediligenceandtomonitorongoingdevelopments.                                
 typically morevolatile                                                                                                                                                                                                                      withtheGroup'sethicalstandardsandthe                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Where appropriate, the Group seeks to work withfranchisees                             
 than developedmarkets,                                                                                                                                                                                                                      UK regulatory environment, andincreased                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     or partners who compensate for its relative lack ofexperience                          
 and are subjectto                                                                                                                                                                                                                           operationalcostsduetocountry-specific                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       inanumberofthesemarkets.                                                               
 changingeconomic,                                                                                                                                                                                                                           processes driven by the operatingor                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 regulatory, socialand                                                                                                                                                                                                                       regulatoryenvironment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 politicaldevelopments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 that are beyondthe                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 Group'scontrol.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 Infrastructureand                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 services alsotend                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 to be lessdeveloped.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 Change in level ofrisk                                                                                                                                                                                                                      Strategiclink                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 No materialchange                                                                                                                                                                                                                           Productive Space, E-CommerceLeadership,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                             OperationalExcellence                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 
 
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