|
The
group has a centralised treasury operation whose 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
36 to the financial statements in compliance with FRS
13.
|
