Principal risks

Understanding and effectively managing the Group’s risk profile and establishing the most effective way to accept, manage further or transfer risk is central to Balfour Beatty’s decision-making process.

The principal and emerging risks and uncertainties are mapped to strategic and business plans to ensure the appropriate coverage of risks, allowing the Board to make a robust assessment of the principal and emerging risks which the Group faces, the controls in place to remove or mitigate these risks and whether these risks represent new, increased or decreased threats. The risk profile comprises interlinked and discrete contract, operational and strategic level risks which are focused on understanding the worst-case scenarios that could threaten the Group’s position, performance, business model and strategy.

As a result, changes in the Group’s risk profile and movements in some of the principal risks have been identified and are described on pages 94 to 101 in the 2020 Annual report.