REG - Johnson Matthey PLC - Annual Report and Notice of AGM <Origin Href="QuoteRef">JMAT.L</Origin> - Part 2

Johnson MattheyAnnouncement

16/07/2015 11:21

- Part 2: For the preceding part double click  ID:nRSQ4194Qa 

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 expiration of patents held by third parties could mean the loss of potential business opportunities. Protecting our broader know-how is equally important to ensure that                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 we maintain this advantage.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 Failure of significant sites                                                                                                                                              
 Risk and impactWhile the group operates from a variety of locations, certain sites are critical to the group due to their scale or the specific nature of their production Mitigation- Business continuity plans include consideration of circumstances in which alternative back up locations may be required. - Capacity and demand planning includes consideration of the site's significance. - Given the nature of the group's operating activities, these can be replicated at other locations with reasonable ease and in a short time frame.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Changes since 2014 annual reportNo change. Risk rating Medium                                                                                                                                                                                                                                                                                                                                                                                                             
 activities.Failure of one of our critical sites could significantly impact the performance of the group.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 Ethics and compliance                                                                                                                                                     
 Risk and impactDue to the markets in which we operate, and the complexity of our supply chain, the group is exposed to a changing and increasingly stringent governance   Mitigation- We have policies and procedures in place and conduct training to ensure employee awareness and understanding. - We operate an independent confidential whistleblowing hotline for employees, contractors and third parties. - We keep abreast of applicable laws, recruit specialist staff and use third party support when required.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Changes since 2014 annual reportWhilst there has been little in the way of new legislation, we have seen increased enforcement activity by the authorities. New risk. Risk rating Medium                                                                                                                                                                                                                                                                                  
 and regulatory environment. Ethical misconduct, breaches of applicable laws and regulations could impact our reputation, licence to operate, shareholder value and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 financial results.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 Business transition                                                                                                                                                       
 Risk and impactTo transition our business we are investing in our core functions / systems, upgrading our business information systems and enhancing our human resources  Mitigation- Ongoing supervision and oversight by the Chief Executive and the GMC who report to the board on key initiatives. - Project and portfolio management and governance frameworks are in place to monitor and report on progress. - Human Resources' support and communication are in place to manage change. - Continuous review of our IT infrastructure and environment. - IT disaster recovery and general business continuity plans are regularly updated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Changes since 2014 annual reportThere are a number of programmes being undertaken in addition to our investment plans for IT systems which will result in significant change. We have therefore concluded that this is a new risk which will increase in the short term. Risk rating Medium                                                                                                                                                                               
 and talent management processes.Failure in our transition programme and change management process and governance could impact our ability to deliver our strategy and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
 exploit 'the best of big and small'. Failure of one or more of our major IT systems over an extended period could impact our ability to manufacture or to report our                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
 operational performance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 
 
Mitigation- Ongoing supervision and oversight by the Chief Executive and the
GMC who report to the board on key initiatives. - Project and portfolio
management and governance frameworks are in place to monitor and report on
progress. - Human Resources' support and communication are in place to manage
change. - Continuous review of our IT infrastructure and environment. - IT
disaster recovery and general business continuity plans are regularly
updated. 
 
Changes since 2014 annual reportThere are a number of programmes being
undertaken in addition to our investment plans for IT systems which will
result in significant change. We have therefore concluded that this is a new
risk which will increase in the short term. Risk rating Medium 
 
Responsibility Statement of the Directors in Respect of the Annual Report and
Accounts 
 
Each of the directors as at the date of the Annual Report and Accounts, whose
names and functions are set out below: 
 
•    Tim Stevenson, Chairman 
 
•    Robert MacLeod, Chief Executive 
 
•    Den Jones, Group Finance Director 
 
•    Larry Pentz, executive director 
 
•    John Walker, executive director 
 
•    Odile Desforges, non-executive director 
 
•    Alan Ferguson, non-executive director 
 
•    Colin Matthews, non-executive director 
 
•    Chris Mottershead, non-executive director 
 
•    Dorothy Thompson, non-executive director 
 
states that to the best of his or her knowledge: 
 
•    the group and parent company accounts, prepared in accordance with the
applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the company and
the undertakings included in the consolidation taken as a whole; and 
 
•    the management report (which comprises the Strategic Report and the
Directors' Report) includes a fair review of the development and performance
of the business and the position of the company and the undertakings included
in the consolidation taken as a whole, together with a description of the
principal risks and uncertainties that they face. 
 
This responsibility statement was approved by the board on 3rd June 2015 and
is signed on its behalf by Tim Stevenson, Chairman. 
 
This information is provided by RNS
The company news service from the London Stock Exchange