· Risks and opportunities
- Connectivity of information
RSA provides a concise explanation of risk management using diagrams to bring the section to life. The risk section sets out the Group’s approach to risk management, including a brief overview of the company’s risk appetite, the Board’s involvement and the principles followed.
Page 45 features a diagram demonstrating the connectivity between the overall RSA Group strategic priorities and the key risk strategies, while also highlighting the action plan to manage the Group’s risk appetite.
The RSA report features a risk ‘heat map’ on page 46 indicating the relative magnitude and likelihood of the key risks facing the business. Much like the materiality determination process noted in the <IR> Framework, the heat map allows the reader to understand the relative prioritization of issues identified by RSA. The heat map also visually depicts instances where the assessment of certain risks have changed since the previous report.
On page 47, a risk table summarizes the ten principal risks to RSA and highlights the key controls and mitigation actions employed to address each risk. In the far right-hand column, arrows are used to indicate the likelihood of change year-over-year. The table also identifies the risk owner for each risk which provides an additional layer of accountability for the Group’s performance.