REG - easyJet PLC - Annual report and accounts 2014 <Origin Href="QuoteRef">EZJ.L</Origin> - Part 2

easyJetAnnouncement

05/12/2014 10:22

- Part 2: For the preceding part double click  ID:nRSE9739Ya 

                                                                                                                                                                                                                                                                                                                                            A portfolio management office and experienced project teams are in place to oversee delivery of a portfolio of projects and programmes, and track budgets and benefits realisation.A steering group, consisting of the Executive Management Team and key senior 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             management, provides challenge to project teams, monitors progress and ensures that decisions are made at the appropriate level.Strong cost control is a key behaviour across the Company. easyJet lean initiatives drive cost reduction and efficiency in      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             targeted areas.                                                                                                                                                                                                                                                 
 Cyber threats and information securityeasyJet receives most of its revenue through credit card transactions and operates as an e-commerce business. It faces both external cyber threats and internal risks to its data and systems.A security breach could result in an adverse impact for the business and reputational damage.                                                                                                                                                                                                                                                                                                                                                                                                                                                           easyJet continues to focus on the protection of information. Controls are in place to ensure customer, employee and other potentially sensitive information is collected, held and processed securely, including:•       monitoring of secure systems against   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             unauthorised access;•       quarterly review of the security of internal systems and easyJet.com through penetration testing;•       enhanced physical security at head office buildings;•       periodic mandatory employee security training to maintain staff 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             awareness;•       consideration of information security risks within procurement processes; and•       monitoring and control of scanning software for fraudulent customer activity by the Revenue Protection team.There is an Information Security Steering    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Group, chaired by the General Counsel, which oversees any developments in data threats and controls.                                                                                                                                                            
 Bribery ActNon-compliance with the Bribery Act 2010 could adversely affect easyJet financially and reputationally.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          easyJet has a zero tolerance approach to bribery which is reinforced by a strong ethical tone from the top.The adoption of appropriate anti-bribery controls has been a key point of focus for the legal compliance programme at easyJet. These include:•       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             completion of risk assessments to determine specific compliance needs;•       specific policies, including ethics, anti-bribery and corruption policy, and gift and hospitality policy;•       online training module and mandatory training for all managers   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             and administrative employees in the UK and across the easyJet network;•       targeted face-to-face training for employee groups perceived as higher risk;•       the adoption of anti-bribery due diligence and standard anti-bribery clauses for inclusion in 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             supplier contracts; and•       maintaining awareness of a whistleblowing helpline.                                                                                                                                                                              
 EXTERNAL RISKS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 Competition and industry consolidationeasyJet operates in competitive market places against both flag carriers and other low-cost airlines.easyJet's key competitive advantages are its network, cost base and efficient and robust capital structure. Failure to retain these advantages could impact its profitability.Industry consolidation will also affect the competitive environment in a number of markets. This could cause a loss of market share and erosion of revenue.                                                                                                                                                                                                                                                                                                        Regular monitoring of competitor and consolidation activity, enabling key routes and positions to be readily defended.easyJet seeks to have a rapid response to any such activity that may impact easyJet's ability to grow the business.The Network Development 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Forum, a cross-functional panel of senior executives, approves new routes and bases and the allocation of assets around the network.                                                                                                                            
 Legislative and regulatory risksLegislative decisions, particularly at a national and European level, can have a significant impact on the airline industry, for example increasing Air Passenger Duty in the UK.The airline industry is currently heavily regulated, with expected increased regulator intervention. This includes environmental, security and airport regulation, which have charges levied by regulatory decision rather than by commercial negotiation.easyJet is exposed to regulatory oversight across its network, which will increase as easyJet grows geographically.An inadequate knowledge or misinterpretation of local regulations could result in fines or enforcement orders. This could adversely affect easyJet's reputation, cost base and market share.  easyJet seeks to have a key role in influencing future and existing policy and regulations which affect the airline industry. This work is coordinated by the Regulatory Affairs Group. Country oversight boards are established for easyJet's main markets,    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             raising awareness of potential changes and impacts in the different countries.                                                                                                                                                                                  
 easyJet is required under European law to compensate passengers for certain long flight delays and cancellations. The interpretation of this law varies by jurisdiction.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Tight operational controls, including availability of standby aircraft and crew to minimise the potential incidence of claims. In addition, country-specific plans are in place to address differing interpretations of the legislation.                        
 
 
End 
 
5 December 2014 
 
For further details please contact easyJet plc: 
 
Institutional investors and sale side analysts: 
 
 Will MacLaren   Investor Relations  +44 (0) 7961 763 879  
 Michael Barker  Investor Relations  +44 (0) 7985 890 939  
 
 
Media: 
 
 Paul Moore       Corporate Communications  +44 (0) 7860 794 444  
 Edward Simpkins  RLM Finsbury              +44 (0) 207 251 3801  
                                            +44 (0) 7947 740 551  
 
 
This information is provided by RNS
The company news service from the London Stock Exchange