Principal risks and uncertainties
2 out of 2 
| Area of principal risk/uncertainty | Description and examples of mitigating activity |
|---|---|
Business interruption
|
A major incident could impact the ability of the Group to continue trading. We maintain and routinely test our business continuity plans in order to reduce the potential impact of such events. Security measures are in place at all sites to protect colleagues, customers and assets. Other mitigating activities include:
|
| Infrastructure development/projects Delay or failure to manage and implement major business and infrastructure projects effectively |
The Group is committed to investing in the long-term capability of systems and infrastructure. A major IT systems replacement is reaching completion and other developments are planned. Projects of this nature carry a degree of risk; however, we have dedicated project teams in place with strong governance frameworks to manage them. Other mitigating activities include:
|
| Product safety Failure to manage supplier relationships and/or ensure appropriate product quality checks are in place |
The safety and quality of our products is of high importance to the Group. Various specific concerns have been raised in the industry during 2007 with regards to imported products and we have taken measures to further increase our controls in this area. Wherever possible Argos and Homebase teams work in conjunction with suppliers to ensure consistent understanding of quality expectations. Other mitigating activities include:
|
| People Reliance on key personnel |
The Group values its colleagues and their contribution to the success of the organisation. Internal training schemes and the graduate recruitment programme maintain the succession pool. We actively encourage promotion from within and monitor employee satisfaction. Other mitigating activities include:
|
Regulatory environment
|
The Group is committed to good governance practices. In addition to ensuring compliance with our existing requirements, we are active in monitoring developments and lobbying together with other retailers to support and develop the industry and the interests of consumers. Other mitigating activities include:
|
| Currency Purchase of products in currencies other than sterling, principally the US dollar and the euro |
The Group is exposed to fluctuations in currency rates in its overseas product purchasing. We mitigate these risks through effective forecasting of requirements and appropriate hedging policies. Other mitigating activities include:
|
2 out of 2
