Risk management

RISK MANAGEMENT

We are committed to supporting effective and efficient risk management practices to safeguard our people, reputation, assets and commercial performance. Risk management protects the reputation of the BBC brand as we showcase it internationally, and ensures stability of commercial returns to our parent, the BBC. Our risk management approach is aligned to the BBC, to its public purpose and values and its editorial standards. This approach is used throughout our businesses, projects and in the formation and management of joint venture (JV) relationships.

Tim Davie, Chief Executive, BBC Worldwide and Director, Global, along with the Worldwide Executive (WEx), sponsor risk management. Divisional and international boards take ownership of local risk management processes, supported by senior managers who have clearly defined risk accountabilities.

A Risk Management and Internal Controls Committee comprised of WEx members and senior managers reviews and challenges the corporate risk register as part of the formal quarterly risk management process.

 

Risk Themes
Strategic Impacts
Mitigation

Reputation and standards
Risk that audiences lose confidence in the integrity of our business or our content. Risk we fail to represent the character of the BBC to global audiences.

Harm to our reputation, our relationship with audiences and to the credibility of the BBC brand.

Leadership and management behaviours that promote the BBC values as a platform for the company's culture. Emphasis on honest and open communications. Policy framework, company communications and HR processes requiring and demonstrating the appropriate behaviours.

JV & associates relationships
Risk we don't maximise the potential from our JV and associate relationships, the principal ones being UKTV, BBC AMERICA and Immediate Media.

Under-delivering against audience expectations and our ambitions for the JV and associate relationships.

JV formation is always backed by a detailed definition of the JV benefits, purpose, mechanics and governance, with appropriate safeguards over editorial control. Approvals framework, encompassing BBC Public Service and alignment, ensure that potential deals which benefit the UK licence fee payer are explored.

Content supply pipeline
Risk that ongoing acquisition and consolidation across the independent sector restricts the addressable market for rights in key genres. Potential changes to BBC Production.

Reduced drama and factual entertainment content, impact the brand and channel strategies.

Dedicated Content division with expertise in content acquisition and relationship management. Output deals with a limited number of key independent producers and minority investment stakes to increase the pipeline of creative output. We are committed to maximising indie returns notwithstanding the BBC Store and channels strategy.

Execution of company strategy
Risk that in-region we do not get the most from our affiliate relationships, or the right brand visibility or the right premium vs Free-to-Air channel mix. Risk that we do not achieve sufficient scale in some regional markets. Risk from launching new direct to consumer service such as BBC Store.

Reduce our ability to showcase BBC content.
More vulnerable to disruptive digital services.
Risk operating with sub-scale regional businesses.

International channel team who lead negotiations and manage channel launches. Regions have extensive knowledge of the affiliate landscape and the expertise to get the right channel mix, platforms and relationships. Leadership experience and insight into markets to ensure we secure the right partners, build the right relationships and evolve the right propositions in the context of a global ambition and strategy.

Information security
Risk that our information assets are compromised. Risk that content assets are disclosed or used maliciously. Risk of content piracy.

Disclosed assets have reduced editorial or commercial value. Disruption to business operations.

New content path defined for high-value content, including dedicated infrastructure and content handling team. New centralised global solution for regional post-production activities (e.g. localisation and dubbing). Enhanced information security roles and responsibilities, additional resources, and global network convergence.

Trading performance and growth
Business performance is sensitive to UK and international economic conditions, especially the USA and Australia, and exchange rate movements.

Adverse impact on cash flows and reported financial results.

Business is diversified across both regions and revenue streams. Risk-averse approach to foreign currency management. Central management of budgets and performance, cash-flow forecasting, careful debtor management and hedging policy.

Regulatory and compliance
Potential for non-compliance with UK, and international laws, especially regulatory changes and legislation with extra-territorial reach.

Civil or criminal challenge. Financial penalties.
Reputational damage.

Comprehensive and enforced policy framework including Executive sponsorship, mandatory training programme, guidelines, regular reporting, specialist committees and steering groups. Oversight by Board, Executive and Risk Management Committee. Central Business and Legal Affairs resources to support.

Business continuity and safety
Major incident with risk of disruption to operations, infrastructure and loss of revenue.

Potential for injury or death. Disruption to business operations.
Reputational damage.

Safety management arrangements supported by policy framework, communications, forums and guides and specialist safety advice. Extensive continuity plans encompassing all offices and business operations. Training on international travel safety.