The UK housing market, which is cyclical in nature, is subject to fluctuations in regional and national economic conditions and changes in political, regulatory and legislative conditions. The Group’s risk management framework has been set up to identify, assess, manage and mitigate risks in a robust and timely manner enabling it to respond to changes in its environment effectively.
The Board is ultimately responsible for the Group’s management and assessment of risk. Our risk management framework includes risk registers which are maintained by the Group’s Internal Audit department and include issues that may occur at financial, operational, company, or strategic level. The registers include risks that may arise from each of the Group’s key operational and Group processes, as well as risks to delivering our strategic objectives and those related to climate change. The registers identity both principal and emerging risks and inform a formal risk assessment process which considers the likelihood and impact of the identified risks together with any mitigating controls that are already in place or are planned. This position is formally reviewed by the Board on an annual basis, including consideration of emerging risk areas.
The Group’s principal risks are those considered to have a potentially material impact on Persimmon’s strategy and business model.
Group Principal Risks
UK’s exit from EU
National and regional economic conditions
Health, safety and the environment
Labour and resources: skilled workforce, retention and succession
Labour and resources: materials and land purchasing
- Cyber and data risk
Further information about our risk managment framework, material issues and principal risks can be found in our latest Annual Report.