Annual Report 2016
South Staffordshire Water PLC’s
approach to risk reflects its status
as a regulated and licensed water
undertaking providing an essential
public service. As detailed above
and in the Strategic Report, a strong
risk management and control
framework is in place to understand
and manage identified risks.
The non-regulated businesses
operate principally in regulated
environments and, as such, must
also have strong risk control
management.
Risk management is discussed at
Board level both in terms of the
Group and its businesses on a
regular basis. As detailed above,
the Group’s individual businesses
are required to monitor risk and its
management with any significant
changes in business risk and any
subsequent procedures or controls
to mitigate the risk being reported
to the Audit Committee.
Further details in respect of the
Company’s risk management can
be found in the Financial Review
section of the Strategic Report on
pages 37 and 38.
External independent auditor
The Board, assisted by the Audit
Committee, reviews each year the
external independent auditor’s
performance, independence,
effectiveness and fees including the
level of non-audit services and fees.
In evaluating the external
independent auditor, the Audit
Committee assesses the calibre of
the external audit firm, the audit
scope and plan which is agreed in
advance with the Audit Committee
and the level and nature of audit
communications, including the
reporting to the Audit Committee of
the audit results.
The responsibilities of the external
independent auditor in the area of
financial reporting are set out in
their report in each year’s financial
statements.
Relations with shareholders
The Board ensures that a regular and
detailed dialogue with shareholders
takes place. This is achieved through
regular management and Board
meetings that shareholders attend
and through other less formal
communication.
Details in respect of the Company’s
going concern can be found in
the Long Term Viability statement
presented on pages 38 and 39, and
in the Directors’ Report on page 42.
49