SS S TRTR RISK APPETITE OUR PRINCIPAL RISKS TR AA The Board determines the amount of risk the Group is willing to accept Our risk management system is designed to identify a broad range of A TETE in pursuit of the Group’s strategic objectives. This varies dependent on risks and uncertainties which could adversely impact the profitability TE GG G II I CC the type of risk and may change over time. In exploring risks and or prospects of the Group. Our principal and emerging risks are those C R R opportunities, we prioritise the interests and safety of our customers which could have the most significant effect on the achievement of our R EE E PP and employees and seek to protect the long-term value and reputation strategic objectives, our financial performance and our long-term P OO O RR of the brand, while maximising commercial benefits to support sustainability. R TT responsible and sustained growth. T The following pages set out the Group’s principal and emerging risks, Risk category Risk appetite GG how they align to our strategy, example risk factors and the primary G OO Compliance Zero tolerance mitigating actions implemented for each risk during the year ended O VEVE Financial Low tolerance VE RR Climate change Low tolerance 31 December 2023. Principal risks evolve over time as some risks R NANNAN Strategic Moderate tolerance assume greater importance and others may become less significant. NAN CC Operational Moderate tolerance C EE We categorise principal risks within one of the following categories: E Strategic, Operational, Compliance, Climate Change and Financial, and link each risk to one or more of our strategic pillars that underpin FF F II our business plan. I NANNAN NAN CC C IALIAL IAL S S S TT T AA A TT T EE E MM M EE E NN N TT T SS S FF F UU RISK MANAGEMENT GOVERNANCE U RR R TT T HH H EE E RR INTERNAL AUDIT & RISK MANAGEMENT RISK MANAGEMENT BOARD AND AUDIT R INF INF COMMITTEE AND RISK COMMITTEE INF OROR – Co-ordinates deployment of the ERMFS OR MM – Maintains the corporate risk register M AA – Identifies and assesses new – The Board has delegated A TT T II – Presents Board, Audit and Risk Committee and Executive and emerging risks oversight of the ERMFS I ONON Committee risk status updates – Performs deep-dive reviews to the Audit and Risk ON – Provides resources and training to support risk management of risk mitigation plans Committee activities and support Functional Risk Champions – Meets quarterly and reports – The Board has ultimate – Evaluates the design and operating effectiveness of principal to the Audit and Risk responsibility for risk mitigation plans on a rotational basis Committee and Executive establishing a framework Committee of prudent and effective – Representation from controls which enable risk to FUNCTIONAL RISK CHAMPIONS AND RISK OWNERS all functions across the be assessed and managed business – Determine risk appetite – Ensures risks are managed in – Review effectiveness of – Responsible for risk management at a functional level accordance with the Board’s risk mitigation plans and – Maintain functional (bottom-up) risk registers and manage and defined risk appetite assurance activity develop risk mitigation plans for principal risks – Champions effective risk – Monitor status of risk – Champion adherence to ERMFS principles and guidance within management and control management activity and their functions across the business reporting – Consider emerging risks and escalate to the Risk Management – Review outputs of principal Committee as appropriate risk mitigation plan reviews ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 65