We are committed to conducting business responsibly and to maintaining and improving systems and processes to reduce the risk of slavery or human trafficking in our business or supply chain.
We search constantly for new ways to provide our customers with a competitive edge across the air, maritime, land and cyber domains. We employ a skilled workforce of 83,200 people1 in over 40 countries, and work closely with local partners to support economic development by transferring knowledge, skills and technology.
Governance and Risk Management
The Board has put in place a detailed governance framework, the Operational Framework, which includes the Company’s Code of Conduct. It sets out how we do business across BAE Systems and encapsulates the Company’s values, policies and processes; together with clear levels of delegated authority aimed at ensuring that all of our employees act in a clear, accountable and consistent manner. Performance and compliance with policies and processes are monitored via the twice yearly Operational Assurance Statement.
This is made up of two parts: – A self-assessment by our business and functional leaders of compliance with the Operational Framework; and – A report showing the key financial and non-financial risks for the relevant business completed by line and functional leaders. The key financial and non-financial risks identified are collated and reviewed by the Executive Committee to identify those issues where the cumulative risk, or possible reputational impacts, could be significant. Responsibility for the management of our most significant non-financial risks is determined by the Executive Committee.
The Operational Assurance Statement and non-financial risk registers are reviewed regularly by the Executive Committee to monitor the status and progression of mitigation plans. Key risks are reported to the Board on a regular basis. The Board’s Audit Committee monitors the key risks identified by the risk assessment processes and reports its findings to the Board twice a year. It is also responsible for reviewing in detail the effectiveness of our system of internal control policies, and procedures for the identification, assessment and reporting of risk. During 2017, modern slavery and human trafficking did not appear on any risk register.
1 Including share of equity accounted investments.