Financial Review (continued)
Relationships Environmental Matters
The Corporate Social Responsibility (CSR) LSL recognises that the environment has c. The documentation and monitoring of
Statement at pages 50 to 56 details the an intrinsic value, central to the quality of risks are recorded and managed through
arrangements for all LSL companies in life and underpins economic development. standardised risk registers which undergo
relation to: LSL understands that its stakeholders are regular reviews and scrutiny by local boards
• Employment (including Equal Opportunities); interested in how LSL manages its impact on and the Head of Risk and Audit;
the environment and how it is performing. d. The Board regularly reviews a consolidated
• Health, Safety and Welfare;
Further, stakeholders may also provide risk register as part of the planning and
• Environmental; and LSL with views and opinions which can reporting cycle to ensure that risks which
• Social and Community Interests (including strengthen LSL’s approach to environmental impact the Group are identified, monitored
social and ethical issues). management. Accordingly, LSL is committed to and mitigated; and
Other than our Shareholders, LSL’s performance communicating on environmental matters with
e. Reporting by the Chairman of the Audit
and value are influenced by other stakeholders, all interested parties. Appropriate guidance
Committee to the Board on any matters
principally our customers, suppliers, and training is also provided to all employees to
which have arisen from the Audit
employees, Government and our strategic ensure they have an awareness of their impact
Committee’s review of the way in which
partners. LSL’s approach with all these parties is on the environment and the role that they play
the risk management and internal control
founded on the principles of open and honest in managing the impact.
framework has been applied together with
dialogue based on a mutual understanding of For further information on other environmental any breakdowns in, or exceptions to, these
needs and objectives. issues including LSL’s activities in preparation of procedures.
For example: Mandatory Emissions Reporting in 2014, please
Listed opposite are the risks which the
see LSL’s CSR Statement which is set out at
• Lenders’ relationships are managed via Board has identified as being significant, and
pages 50 to 56 of this Report.
dedicated account managers. therefore the principal risks and uncertainties
• Employees are managed and consulted both faced by LSL, together with details of key
on an individual basis and via representative Principal Risks mitigation initiatives, which are subject to
regular review.
groups with LSL recognising Unite as an
employee representative body.
and Uncertainties LSL also faces other risks which, although
• Group companies participate in relevant trade LSL’s risk management arrangements form important and subject to regular review, have
associations and industry groups, such as an integral part to its overall framework for been assessed as less significant and are not
Royal Institute of Chartered Surveyors (RICS), the management of risks and maintaining listed here. This includes some risks which
the Association of Mortgage Intermediaries internal controls. Through the framework, the were reported in previous years’ Annual Report
(AMI), the National Association of Estate Board continually identifies, evaluates and and Accounts and which through changes in
Agents (NAEA), the Association of Residential manages the principal risks and uncertainties external factors and careful management are
Lettings Agents (ARLA), National Federation faced by LSL and which could adversely affect no longer material to the Group as a whole.
of Property Professionals (NFoPP) and The its business, operating results and financial However, many risk factors remain beyond the
Property Ombudsman (TPO), because these condition. direct control of LSL and the risk management
give us genuine access to customer views and This risk management and internal controls framework and procedures can only provide
decision makers in Government and other framework includes: reasonable but not absolute assurance that the
regulatory bodies. a. Ownership of the risk management and principal risks and uncertainties are managed to
• Further, the Group aims to build partnerships internal controls framework by the Board, an acceptable level.
with the communities in which it operates supported by the Company Secretary, Head Further information relating to the
and to offer support in addition to providing of Risk and Audit and the Group Financial management of these risks and uncertainties
employment and training, using local services Controller; is set out in the Corporate Governance Report
and suppliers where possible and paying b. A network of risk owners in each of LSL’s (Internal Controls) of this Report on page 38.
taxes. businesses with specific responsibilities
relating to risk management and internal
controls;
22 ANNUAL REPORT AND ACCOUNTS 2012