Risk management and internal control
A full description of the Risk Management Framework of the British Business Bank is included within their Annual Report. The main aspects of the framework are:
- A collection of tools, processes and methodologies to identify, assess, monitor and control risks.
- A Risk Appetite Policy which British Business Investments is subject to, however the British Business Investment’s Board approves the company’s own Risk Appetite Statement.
- Risk governance based on the ‘three lines of defence’ model.
- A wide range of policies, frameworks and procedures which take account of regulatory or legal requirement and industry best practice.
The key operational risks the company is exposed to are:
- Maintaining a suitably qualified investment team and Board to deliver the company’s investment strategy.
- Ensuring systems and processes support investment decision making, reporting and portfolio management.
- Procuring appropriate support across a range of services from the British Business Bank including: finance, legal, risk, IT and marketing.
The key financial risks the company is exposed to are detailed in note 13(iii) of the accompanying financial statements.