Regular review of risks and actions to address risks takes place at all levels of the Group. Risks are defined as threats to the achievement of business objectives or to the continuing reputation of the Group. The top level corporate risk register reflects the outcomes of lower level programme, function or business unit risk reviews and is reviewed in detail by the risk committee. Nevertheless, the Board retains its strategic responsibility for risk decision making regularly reviewing the corporate risk register and considering these risks in the context of the business strategy, as reported to it by the risk committee.
The risks and uncertainties on these pages are considered to be principal to delivering our strategy and business results, and specific to the nature of our business, notwithstanding that there are other risks that may occur and may impact on the achievement of the Group’s objectives.
Risk or uncertainty and potential impact | How we manage it |
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Significant external events affecting demand for transportation such as terrorism, political change, global pandemic, natural disaster or continued and deeper economic retrenchment |
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Failure to minimise the environmental impact of the Group’s products and operations leading to reputational damage and ultimately loss of market share |
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Reduction in government spending due to global financial uncertainty and budgetary constraint in Europe and the US in particular causing reduced revenues on existing platforms and inhibiting investment in new technologies |
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Failure of counterparties, including financial institutions, customers, joint venture partners and insurers, driven mainly by the economic uncertainties and pressures in the current environment, potentially affecting short-term cash flows |
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Fluctuations in foreign currency exchange rates affecting operational results or the outcomes of financial transactions |
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Regulatory changes relating to financial derivatives may require the Group to post cash collateral, increasing cash flow volatility and the risk of default |
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If the Group's products, services and pricing do not remain competitive, this could result in the loss of market share, with attendant impact on long-term financial performance |
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Non-compliance with applicable legislation and regulations, for example export controls, anti-bribery and authorisation of chemicals and substances compromising the ability to conduct business in certain jurisdictions and exposing the Group to reputational damage and potential financial penalties |
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Failure to grow capable resource globally due to demographic trends and limited supply of appropriately skilled personnel affecting programme delivery, damaging reputation and stifling opportunities for future innovation |
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Product performance not meeting expectations affecting safety and reliability with adverse long-term financial consequences |
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Disruption of supply chain due to external factors or failure to deliver parts to committed costs and quality reducing the ability to meet customer commitments, win future business or achieve operational results |
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Downgrade in credit rating restricting the Group’s ability to secure funding, hedge forward or provide vendor financing |
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Failure to conduct business in an ethical and socially responsible manner causing disruption and reputational damage |
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Failure to manage multiple complex product programmes effectively with potentially significant adverse financial and reputational consequences, including the risk of impairment of the carrying value of the Group’s intangible assets and the impact of potential litigation |
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Breach of IT security through increasing volumes of data being transmitted electronically across international borders may cause controlled data to be lost, corrupted or accessed by unauthorised users, impacting the Group’s reputation |
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Failure to execute the programme to modernise the IT infrastructure impacting efficiency and effectiveness of business operations |
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Loss or unintended disclosure of Intellectual Property damaging the Group’s competitive position and causing potential breach of contractual requirements |
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