ZIGUP is very mindful of its role as a key provider of mobility solutions to a very broad range of customers, and the importance of properly managing the risks inherent in the business in order to keep our customers moving smarter, to deliver exceptional customer experience while securing opportunities to grow.
Risk context
With nearly 8,000 colleagues across three countries, a vehicle fleet of close to 130,000 and a large network of branches, workshops and vehicle body shops, we have a broad range of operational environments which present specific operational and health and safety risks which are our no.1 priority.
We operate in an industry where financial leverage is a key element of business models and access to capital is essential to securing vehicle supply and responding to inorganic opportunities. A growing number of our subsidiaries also operate in a regulated environment, under either the Financial Conduct Authority (FCA) or the Solicitors Regulation Authority (SRA). We are expert in the management of such financial leverage and closely monitor our regulatory processes and compliance.
The administration and provision of our services is also heavily dependent on maintaining effective, secure and robust IT systems. The group is working through a significant evolution to improve our core IT systems and more fully digitise our offering to customers and we consider this as an area where active management of risk is critical.
Framework
Our risk management framework and principal risks reflect the particular profile of the ZIGUP group, and we continually monitor our businesses to ensure that the risks which the group faces are identified and their impacts on our objectives and our key stakeholders assessed, so that these can be mitigated to an acceptable level. Our risk horizon of up to 3 years seeks to capture emerging risks in time to monitor and mitigate their potential impact.
Risk strategy
Our risk management strategy supports our ability to respond to the changing need of our stakeholders and the dynamics of the markets we operate in. We identify risks which could affect us achieving our strategic objectives and seek to mitigate these to an acceptable level.
Risk framework
We have a formal governance structure underpinning our approach to risk management, ensuring there are robust processes in place to achieve effective risk management.
Risk appetite
Our risk appetite processes ensure that risks are consistently managed across the group with decisions being made regarding the right level of risk and that the appropriate resources and controls are put in place at each level of risk.
Principle risks
Our risk register records over 700 individual risks which are aggregated into 25 key risks and allocated against 6 risk categories. These are mapped against 8 principal risks within strategic, financial and operational areas.
Risk trends
We monitor our key risks and assess how they are mitigated against our risk appetite tolerance. We also evaluate whether the risk factor has changed against the prior year.
Risk tables
These detail our principal risks within strategic, financial and operational categories and consider their influencing factors and our controls and mitigating activities.
