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The group has a centralised
treasury operation which will remain following the progressive devolution of
the group’s operations. Its primary role is to manage liquidity, funding,
investment and the group’s financial risk, including risk from volatility in
currency and interest rates and counterparty credit risk. The treasury
operation is not a profit centre and the objective is to manage risk at optimum
cost.
The Board sets the treasury
department’s policy and its activities are subject to a set of controls
commensurate with the magnitude of the borrowings and investments under its
management. Counterparty credit risk is closely monitored and managed within
controls set by the Board. Derivative instruments, including forward foreign
exchange contracts, are entered into for hedging purposes only.
We have set out further details on this topic and on our capital
resources and foreign currency exposure in note
35 to the financial statements in compliance with FRS 13. |
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