AmazonScience/document-haystack

1Effective risk management supports us to 2meet our corporate objectives, it helps us 3to make risk-based decisions so that we 4operate with fewer shocks and allocate 5resources in line with our risk appetite. 6Our Risk Management Principles:718Tailor an enterprise risk 9management system that 10improves performance, 11encourages innovation, and 12supports the achievement of 13our objectives.14215Integrate and align risk 16management across different 17strategic, functional, and 18operational disciplines, such 19as budgeting, compliance, 20finance, health and safety, IT, 21security, and so on.22323Embed risk management as 24an integral part of the way 25we manage our business, 26people, and teams across all 27our operations.28429Proactively manage our risks 30in our fast-changing business 31environment, updating and 32continuously improving our 33risk information to support 34decision making at all levels.35Management Process36We work together to use modern risk 37management methods (and Entain’s four-38step model in figure 1 below) as an integral 39part of our day-to-day decision making 40across our entire organisation, minimising 41threats to the delivery of our strategy, and 42maximising opportunities.43Risk Strategy44At Entain, we are committed to active and 45effective risk management, creating, and 46protecting value to the organisation and 47helping us deliver on our strategic priorities, 48managing threats, exploiting opportunities, 49and building resilience. We support risk 50taking where it is forecast to generate 51returns for the business and manage this in 52line with our values and ethics. 53Definition:  54Risk55We define risk as “the effect of 56uncertainty on the ability of Entain 57to achieve its objectives”. Risks can 58be either opportunities (upside) or 59threats (downsides), and we assess 60and manage both.61Definition:  62Risk Management63Risk management is doing 64something to take charge of and 65change those uncertainties that 66matter most across the company. 67Enterprise Risk Management (ERM) 68are the co-ordinated activities to 69direct and control the organisation 70with regard to risk.71Our risk landscapes72Current risks73Risks we are managing now that could stop 74us achieving our strategic objectives.75Emerging risks76Risks with a future impact from external or 77internal opportunities or threats. These can 78be slow moving, as well as rapid velocity.79What we assess80 Risk ownership:  each risk has a 81named owner82 Impact versus Action:  globally applied 83scale measuring the amount of action 84required to manage the risk to an 85acceptable level 86 Critical controls:  subject to internal audit 87review and monitoring88 Current risk:  after existing controls 89 Risk acceptance:  if the risk is acceptable 90with the current controls or if additional 91actions are needed to manage the risk to 92an acceptable level.93 Risk appetite:  defined at risk level94 Actions: identify further actions if 95required, with action owners and 96due dates97Our bottom-up registers98The bedrock of our risk assessment. 99Owned by functions and super-regions, 100they identify, analyse, and evaluate risks 101and mitigating controls arising from day-to-102day operations globally. 103Our significant risk dashboards104The main output of our risk assessment. 105Owned by functions and super-regions, 106they highlight the significant threats 107and opportunities via our ‘impact versus 108actions’ scales and subsequent controls 109needed to mitigate the threats and exploit 110the opportunities arising from day-to-111day operations globally. They include a 112description of the risk, reference which 113corporate objectives are exposed to the 114risk, and what additional support and 115decisions are needed to manage the risk to 116an acceptable level. The Dashboards are 117used to make effective, risk-based decisions 118on allocation of resources.119Risk categories we assess120As part of the ERM process, we assess 121against the following impacts criteria:122 Financial123 Operational124 Reputation / Brand125 Legal / Regulation126 Health & Safety127Entain plc Annual Report 2023801281 Overview 8 Strategic report 88  Governance 140  Financial statements129Risk management process 130and methodology