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ERM Euromoney Institutional Investor Plc

1,460.00
0.00 (0.00%)
26 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Euromoney Institutional Investor Plc LSE:ERM London Ordinary Share GB0006886666 ORD 0.25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 1,460.00 1,458.00 1,460.00 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Euromoney Institutional InvestorPLC Annual Report & Accounts 2018 and AGM 2019 (1748L)

20/12/2018 3:26pm

UK Regulatory


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TIDMERM

RNS Number : 1748L

Euromoney Institutional InvestorPLC

20 December 2018

EUROMONEY INSTITUTIONAL INVESTOR PLC

ANNUAL REPORT AND ACCOUNTS 2018 AND

NOTICE OF ANNUAL GENERAL MEETING 2019

20 December 2018

Euromoney Institutional Investor PLC ("Euromoney") the international business information and events group, has published the following documents on its website www.euromoneyplc.com:

 
 Document                           Location 
 Annual Report and Accounts 2018    www.euromoneyplc.com/investor-relations/reports-and-presentations 
                                   ----------------------------------------------------------------------------- 
 Notice of Annual General Meeting   www.euromoneyplc.com/investor-relations/shareholder-services/agm-information 
  2019 
                                   ----------------------------------------------------------------------------- 
 

The Annual Report and Accounts 2018, together with the Notice of Annual General Meeting 2019 and Form of Proxy have been posted or otherwise made available to shareholders. These documents have been uploaded to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM.

The Company's Annual General Meeting 2019 is scheduled to be held at 9.30am on 1 February 2019 at 8 Bouverie Street, London, EC4Y 8AX.

The information set out below, which is extracted from the Annual Report and Accounts 2018, is provided solely for the purpose of complying with DTR 6.3.5R. The information should be read in conjunction with the Preliminary Statement announcement made on 22 November 2018.

Statement of Directors' responsibilities in respect of the Financial Statements

The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulation. Company law requires the Directors to prepare Financial Statements for each financial year. Under that law the Directors have prepared the Group Financial Statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and Company Financial Statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of the Group and Company for that period. In preparing the Financial Statements, the Directors are required to:

   --     select suitable accounting policies and then apply them consistently 

-- state whether applicable IFRSs as adopted by the European Union have been followed for the Group Financial Statements and United Kingdom Accounting Standards, comprising FRS 102, have been followed for the Company Financial Statements, subject to any material departures disclosed and explained in the Financial Statements

   --     make judgements and accounting estimates that are reasonable and prudent and 

-- prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Group and Company will continue in business

The Directors are also responsible for safeguarding the assets of the Group and Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and Company and enable them to ensure that the Financial Statements and the Directors' Remuneration Report comply with the Companies Act 2006 and, as regards the Group Financial Statements, Article 4 of the IAS Regulation.

The Directors are responsible for the maintenance and integrity of the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.

Each of the Directors confirm that to the best of their knowledge:

-- the Company's Financial Statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law), give a true and fair view of the assets, liabilities, financial position and profit of the Company

-- the Group Financial Statements, which have been prepared in accordance with IFRSs as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position, profit and cash flows of the Group and

-- the Strategic Report and the Directors' Report includes a fair review of the development and performance of the business and the position of the Group and Company, together with a

description of the principal risks and uncertainties that it faces.

Principal risks and uncertainties

The principal risks and uncertainties the Group faces vary across its different businesses. Management of significant risk is the responsibility of the Board and during the year was overseen by the Risk Committee. For the year ahead, the Risk Committee will continue to operate as a management committee, reporting into our reconstituted Audit and Risk Committee which will result in management providing the Board with a more regular and detailed review of the management of the Group's principal risks. In tandem with this, the Group plans to review the controls in place across the business and update its risk management framework. The Group's principal risks and uncertainties are summarised below.

Downturn in key geographic region or market sector (cyclical downturn)

 
 Key factors                                                    Mitigation                                                      Risk appetite 
                                                                                                                                Risk tolerant 
    *    Concentration of customers in financial services           *    The Group actively manages cyclical risk through its   Prior years 
         sector makes this exposure acute                                strategic framework                                    (relative 
                                                                                                                                position) 
                                                                                                                                2017: Risk 
    *    Global economic and geopolitical risk has further          *    The Group continues to carry out                       tolerant 
         increased this year driven by continuing uncertainty                                                                   2016: Risk 
         in the UK and Europe over the UK's EU exit and the                                                                     tolerant 
         increasingly protectionist trade policies of the US       comprehensive risk                                           2015: Risk 
         and China                                                 reviews of its asset                                         tolerant 
                                                                   management businesses 
                                                                   resulting in                                                 Post-mitigation 
    *    Headwinds in the asset management                         detailed mitigation                                          risk 
                                                                   plans for each business                                      trend 
                                                                   and continuous tracking 
   market including the                                            of effective risk                                            This risk is 
   shift towards passive                                           management                                                   increasing 
   portfolio management,                                            *    A significant restructuring exercise has 
   new technologies and                                                                                                         Description of 
   the impact of MiFID                                                                                                          risk 
   II continue to affect                                           been carried out to                                          change 
   clients in the sector                                           'right-size' our BCA 
                                                                   and NDR businesses                                           Global economic 
                                                                   and ensure focus on                                          and 
                                                                   core products                                                geopolitical 
                                                                    *    The Group operates in many geographical markets        uncertainty 
                                                                                                                                is increasing 
                                                                                                                                following 
                                                                    *    Some diversification in sector mix                     the US 
                                                                                                                                election, US 
                                                                                                                                and Chinese 
                                                                    *    Ability to cut some costs temporarily and quickly      protectionism, 
                                                                                                                                limited 
                                                                                                                                progress of 
                                                                                                                                the 
                                                                                                                                UK's EU exit 
                                                                                                                                negotiations 
                                                                                                                                and disruption 
                                                                                                                                in 
                                                                                                                                a sector with 
                                                                                                                                concentrated 
                                                                                                                                Group revenues 
                                                               --------------------------------------------------------------  ---------------- 
 Board's view 
  There are limited options to mitigate impact of a significant 
  cyclical downturn in the short and medium term. The residual 
  risk will remain high. The Board also wishes to continue to 
  serve the Asset Management segment because it considers it 
  to be sufficiently attractive over the medium term. 
 

Product and market transformation/disruption (structural change)

 
 Key factors                                                   Mitigation                                                    Risk appetite 
                                                                                                                             Risk tolerant 
  *    Competition from existing competitors, new disruptive    *    Strategy designed to appraise and evaluate structural   Prior years 
       players and new entrants                                      risks and respond to them, taking advantage of          (relative 
                                                                     opportunities where identified                          position) 
                                                                                                                             2017: Risk 
  *    New technologies change how customers access and use                                                                  tolerant 
       our products                                             *    Regular CEO-led reviews across all divisions            2016: Risk 
                                                                                                                             tolerant 
                                                                                                                             2015: Risk 
  *    Changing demographics can affect customer needs and      *    Entrepreneurial approach                                tolerant 
       opportunities 
                                                                                                                             Post- 
                                                                *    Effective management reporting with regular forecast    mitigation risk 
  *    Structural pressure on customer business models will          reviews                                                 trend 
       affect demand for the Group's products and services, 
       particularly in financial services                                                                                    This risk is 
                                                                *    Portfolio spreads risk to some degree                   unchanged 
 
  *    Regulations such as MiFID II creating both challenges                                                                 Description of 
       and opportunities in asset management sector             *    Portfolio management allows the Group to sell           risk 
                                                                     structurally challenged businesses and to buy           change 
                                                                     structurally strong ones 
  *    Free content available via the internet increases the                                                                 As an 
       threat to paid subscription model                                                                                     entrepreneurial 
                                                                *    Cyclical review of divisional activities by the Risk    business, the 
                                                                     Committee                                               Group 
  *    Lower barriers to entry for new entrants                                                                              is experienced 
                                                                                                                             at 
                                                                                                                             managing this 
  *    Not acquiring the types of assets that the Group's                                                                    risk 
       strategy requires 
                                                              ------------------------------------------------------------  ---------------- 
 Board's view 
  Controls are in place but exposure to this risk will remain 
  moderate. 
 

Exposure to US dollar exchange rate

 
 Key factors                                                    Mitigation                                                      Risk appetite 
                                                                                                                                Risk tolerant 
    *    Approximately two-thirds of revenues and profits are      *    US dollar forward contracts are used to hedge 80% of 
         generated in US dollars, including approximately 40%           UK based US dollar revenues for the coming 12 months    Prior years 
         of the revenues in the UK-based businesses. This               and 50% of these revenues for a further six months      (relative 
         gives significant exposure to movements in the US                                                                      position) 
         dollar for both UK revenues and the translation of                                                                     2017: Risk 
         results of foreign subsidiaries                           *    Exposure from the translation of US                     tolerant 
                                                                        dollar-denominated earnings is not directly hedged      2016: Risk 
                                                                        but is partially offset by US dollar costs and the      tolerant 
    *    A significant strengthening of sterling against the            use of US dollar-denominated debt when debt is          2015: Risk 
         US dollar could reduce profits and dividends                   required                                                tolerant 
 
                                                                                                                                Post-mitigation 
    *    The Group also undertakes transactions in many other      *    Sensitivity analysis is performed regularly to assess   risk 
         currencies, although none currently provides a                 the impact of currency risk and is reviewed by the      trend 
         significant risk to the results                                Tax & Treasury Committee 
                                                                                                                                This risk is 
                                                                                                                                unchanged 
    *    The UK's exit from the EU may result in                   *    Given heightened volatility, the Group 
                                                                                                                                Description of 
                                                                                                                                risk 
   significant currency                                           hedging strategy is                                           change 
   fluctuations depending                                         under frequent review 
   on the terms of the                                            and includes regular                                          The Group is 
   exit                                                           impact analysis of                                            experienced 
                                                                  various exchange rate                                         at managing 
                                                                  scenarios together                                            risks 
                                                                  with internal risk                                            related to its 
                                                                  mitigations such as                                           exposure 
                                                                  natural hedging of                                            to the US 
                                                                  non-sterling earnings                                         dollar and 
                                                                                                                                this risk 
                                                                                                                                remains 
                                                                                                                                unchanged 
                                                               --------------------------------------------------------------  ---------------- 
 Board's view 
  Although the Group considers this risk unchanged, the increased 
  volatility and uncertainty of sterling against the US dollar 
  after the UK's exit from the EU is expected to continue for 
  some time. 
 

Information security breach resulting in challenge to data integrity

 
 Key factors                                                   Mitigation                                                    Risk appetite 
                                                                                                                             Risk averse 
    *    Integrity of data products is fundamental to the       *    Governance provided by Risk Committee and Information   Prior years 
         success of the business                                     Security Steering Group                                 (relative 
                                                                                                                             position) 
                                                                                                                             2017: Risk 
    *    The Group relies on large quantities of data           *    Approved information security standards and policies    averse 
         including customer, employee and commercial data            which are reviewed on a regular basis                   2016: Risk 
                                                                                                                             averse 
                                                                                                                             2015: Risk 
    *    Increasing number of cyber-attacks affecting           *    Continuing education and awareness programmes for all   neutral 
         organisations globally                                      staff                                                   Post-mitigation 
                                                                                                                             risk 
                                                                                                                             trend 
    *    The Group has many websites and is reliant on          *    Active information security programme (including 
         distributed technology, increasing exposure to              access management and cyber-resilience planning) to     This risk is 
         threats                                                     align all parts of the Group with its information       increasing 
                                                                     security standards 
                                                                                                                             Description of 
    *    A successful cyber-attack could cause considerable                                                                  risk 
         disruption to business operations, lost revenue,       *    Crisis management and business continuity frameworks    change 
         regulatory fines and reputational damage                    cover all businesses including disaster recovery 
                                                                     planning for IT systems                                 Most industry 
                                                                                                                             information 
    *    The EU General Data Protection Regulation increases                                                                 security 
         regulatory scrutiny and penalties                      *    Multi-layered defence strategy                          analysts agree 
                                                                                                                             that 
                                                                                                                             this risk is 
    *    Technological innovations in mobile working,           *    New, more robust IT security due diligence framework    increasing and 
         cloud-based technologies and social media introduce         for acquisitions                                        warn 
         new information security risks                                                                                      that companies 
                                                                                                                             will continue 
                                                                *    Access to key systems and data is restricted,           to face 
    *    Threats such as ransomware and                              monitored and logged with auditable data trails in      more regular 
                                                                     place                                                   and 
                                                                                                                             sophisticated 
   cryptomining require                                                                                                      cyber-attacks 
   the Group to adapt                                           *    Comprehensive backups for IT infrastructure, systems 
   to a continually shifting                                         and business data 
   landscape 
    *    Phishing remains one of the most serious threats to 
         network security                                       *    Increase in number of dedicated IT security roles in 
                                                                     Central Technology 
 
 
                                                                *    Professional indemnity insurance provides cover for 
                                                                     cyber risks including cyber-attack and data breach 
                                                                     incidents 
 
 
                                                                *    Information security is reviewed as part of our 
                                                                     internal audit process 
 
 
                                                                *    Regular information security training for employees, 
                                                                     contractors and freelancers 
 
 
                                                                *    Incident response playbook 
                                                              ------------------------------------------------------------  ---------------- 
 Board's view 
  The use of technology creates this inherent risk. The Group 
  strives to balance the need to innovate through the use of 
  technology while responsibly managing risk, including through 
  the use of third party expertise. Controls to prevent an information 
  security breach or cyber-attack are reviewed regularly and, 
  where required, enhanced. However, the rising number of cyber-attacks 
  affecting organisations globally, the Group's greater dependency 
  on technology and the growing threat from cyber-crime are 
  increasing this risk. 
 

Reputational damage from a legal, regulatory or behavioural issue arising from operational activities

 
 Key factors                                                  Mitigation                                                      Risk appetite 
                                                                                                                              Risk averse 
  *    The Group operates in many jurisdictions and must be      *    Processes and methodologies for assessing commodity 
       compliant with all applicable laws and regulations             prices and calculating benchmarks and indices are       Prior years 
                                                                      clearly defined and documented                          (relative 
                                                                                                                              position) 
  *    The Group's businesses publish, market and license                                                                     2017: Risk 
       increasingly complex content and data which in some       *    Compliance staff appointed in key positions             averse 
       cases is data on which its customers may choose to                                                                     2016: Risk 
       rely when executing transactions                                                                                       averse 
                                                                 *    Compliance with International Organization of           2015: Risk 
                                                                      Securities Commissions (IOSCO) standards achieved for   averse 
  *    Success of the Group is dependent on client                    relevant pricing products 
       confidence in integrity of products and brands                                                                         Post-mitigation 
                                                                                                                              risk 
                                                                 *    Code of conduct and other key policies in place for     trend 
  *    Claimants can forum shop when determining where to             price assessment, benchmark and index reporting 
       litigate or threaten legal proceedings                         activities                                              This risk is 
                                                                                                                              unchanged 
 
  *    Compliance risk is increasing for information             *    Refreshed anti-bribery and corruption training and      Description of 
       providers as price, benchmark and index reporting              awareness programme rolled out globally in 2018         risk 
       activities are coming into scope of new regulations                                                                    change 
       being introduced as a result of the financial crisis 
       of 2008 and LIBOR scandal                                 *    A review and update of the Group's                      Information 
                                                                                                                              providers 
                                                                                                                              face increased 
  *    Risk or reputational damage can arise from errors in     trade sanctions controls                                      compliance 
       underlying data or content, failures of data             and policy was                                                risks as a 
       integrity, failure to educate customers on               completed                                                     result 
       appropriate usage of data, inappropriate reliance on      *    Review processes for operation of events and awards     of the 
       third party data or content to create proprietary              undertaken in 2018                                      complexity 
       content or errors in content creation, or a failure                                                                    of data they 
       to comply with applicable law or regulation                                                                            publish 
                                                                 *    Specialist training in publishing law issues provided   which customers 
                                                                      to relevant staff                                       may 
                                                                                                                              rely on for 
                                                                                                                              certain 
                                                                 *    Company-wide speak up policy in place                   business 
                                                                                                                              decisions 
 
                                                                 *    Comprehensive legal disclaimers in place 
 
 
                                                                 *    Professional indemnity insurance 
                                                             --------------------------------------------------------------  ---------------- 
 Board's view 
  We have a zero-tolerance approach to certain legal and regulatory 
  risks such as bribery. At the same time, the publication of 
  data and content in digital businesses inevitably exposes 
  the Group to global legal and regulatory risk. The manner 
  in which we conduct our businesses can also result in risk 
  if policies are not complied with. Our divisions have access 
  to the Group's central functions such as legal, risk and internal 
  audit, which provide more specialist resource to raise awareness 
  of, manage and mitigate risk. Legal and regulatory compliance 
  risk for the Group is unchanged. 
 

Disruption to operations from a business continuity failure

 
 Key factors                                                   Mitigation                                                   Risk appetite 
                                                                                                                            Risk averse 
  *    Significant reliance on third-party technology           *    Crisis management and business continuity framework 
       hosting services                                              covers all businesses including disaster recovery      Prior years 
                                                                     planning for IT systems                                (relative 
                                                                                                                            position) 
  *    Many products are dependent on specialist, technical                                                                 2017: Risk 
       and editorial expertise                                  *    Crisis management exercise programme for the senior    averse 
                                                                     management team                                        2016: Risk 
                                                                                                                            averse 
  *    A significant incident affecting one or more of the                                                                  2015: Risk 
       Company's key offices (London, New York, Montreal or     *    Group-wide IT disaster recovery testing conducted      averse 
       Hong Kong) could lead to disruption to Group                  every six months and business continuity testing 
       operations and reputational damage                            conducted every 12 months                              Post-mitigation 
                                                                                                                            risk 
                                                                                                                            trend 
  *    Potential impact of the UK's exit from the EU without    *    Clear responsibilities for business continuity 
       a deal in place could cause disruption to global              planning established across divisions                  This risk is 
       business travel. This could affect both our                                                                          unchanged 
       employees' and customers' ability to travel 
                                                                *    Substantial central and business group investment in   Description of 
                                                                     cloud-based platforms and software                     risk 
  *    Information security breach impacting wider business                                                                 change 
       operations 
                                                                *    Risk assessments for new suppliers and technologies    The Group 
                                                                     consider operational and financial resilience          recognises 
                                                                                                                            that business 
                                                                                                                            continuity 
                                                                *    Disposal of a number of businesses this year has       events will 
                                                                     reduced the number of office locations globally        arise 
                                                                                                                            from time to 
                                                                                                                            time 
                                                                *    Migration of the Group's websites to cloud hosting     and remains 
                                                                     solution                                               committed 
                                                                                                                            to active 
                                                                                                                            management 
                                                                                                                            of this risk 
                                                              -----------------------------------------------------------  ---------------- 
 Board's view 
  Business disruption is an unavoidable risk but can be mitigated 
  if business continuity plans are well developed and managed. 
  In spite of challenges such as extreme weather in Asia and 
  the US and unplanned technology downtime, all businesses maintained 
  operations successfully throughout the year which demonstrated 
  that effective controls are in place. However, regular IT 
  and business continuity planning and testing will continue 
  to be an important control. 
 

Catastrophic or high impact incident affecting key events or wider business

 
 Key factors                                                  Mitigation                                                      Risk appetite 
                                                                                                                              Risk averse 
  *    The Group has a number of large events which are          *    A new event risk management framework is being 
       exposed to one-off risks including natural hazards             rolled-out in 2019                                      Prior years 
       and security incidents                                                                                                 (relative 
                                                                                                                              position) 
                                                                 *    Divisional Directors with responsibility for events 
  *    Risk affects customers as well as staff and revenue,           sit on the Risk Committee                               2017: Risk 
       and can also adversely impact brand reputation                                                                         averse 
 
                                                                 *    Crisis management and business continuity framework     2016: Risk 
  *    Prolonged interruption to business travel will harm            requires all businesses to plan for high impact         averse 
       event revenues and disrupt management and sales                events 
       operations                                                                                                             2015: Risk 
                                                                                                                              neutral 
                                                                 *    Specialist security and medical assistance services 
  *    The Group operates in regions with higher risk of              engaged to support all staff working away from the      Post-mitigation 
       natural hazards                                                office                                                  risk 
                                                                                                                              trend 
 
                                                                 *    Mandatory security and risk management training         This risk is 
                                                                      programme for event staff and business travellers       unchanged 
 
                                                                                                                              Description of 
                                                                 *    Close co-ordination between central                     risk 
                                                                                                                              change 
 
                                                                functions such as                                             The Group 
                                                                risk and information                                          recognises 
                                                                risk with events teams                                        that 
                                                                to ensure robust approach                                     international 
                                                                to risk management                                            events 
                                                                 *    With sufficient notice, events can be moved to          businesses 
                                                                      non-affected regions                                    are exposed to 
                                                                                                                              this 
                                                                                                                              risk and the 
                                                                 *    Cancellation insurance for the Group's largest events   introduction 
                                                                                                                              of its event 
                                                                                                                              risk 
                                                                                                                              management 
                                                                                                                              framework 
                                                                                                                              will enable 
                                                                                                                              further 
                                                                                                                              mitigation of 
                                                                                                                              this 
                                                                                                                              risk in 2019 
                                                             --------------------------------------------------------------  ---------------- 
 Board's view 
  The Group continues to invest in training and resources to 
  keep staff safe when travelling and to improve event/conference 
  resilience. 
 

Acquisition or disposal fails to generate expected returns

 
 Key factors                                                   Mitigation                                                     Risk appetite 
                                                                                                                              Risk neutral 
  *    Active portfolio management means the Group continues      *    M&A strategy and execution is a regular topic of 
       to make strategic acquisitions and disposals                    Board focus                                            Prior years 
                                                                                                                              (relative 
                                                                                                                              position) 
  *    Significant growth has been M&A related, through both      *    Investment Committee established 
       acquired profit and growth in acquired businesses                                                                      2017: Risk 
                                                                                                                              neutral 
                                                                 enabling quicker decision-making 
  *    Failure to successfully acquire either the right          and detailed Board                                           2016: Risk 
       businesses (meaning businesses in our top-right           oversight of M&A transactions                                neutral 
       quadrant or which can be developed and moved into our      *    CEO and CFO closely involved in M&A execution 
       top-right quadrant), or a failure to successfully                                                                      2015: Risk 
       make acquisitions at all, will negatively impact our                                                                   neutral 
       ability to deliver the Group strategy                      *    Active portfolio management with a clear framework 
                                                                       and operating in line with agreed strategy             Post-mitigation 
                                                                                                                              risk 
  *    Increasingly high multiples and competitive auction                                                                    trend 
       processes for high quality assets can favour private       *    Development of key objective criteria 
       equity buyers                                                                                                          This risk is 
                                                                                                                              unchanged 
                                                                 against which acquisition 
  *    Failure to integrate as intended may mean an acquired     or disposal                                                  Description of 
       business does not generate the expected returns           decisions are tested                                         risk 
                                                                  *    Appropriate approvals process in place                 change 
 
  *    Risk of impairment loss if an acquired business does                                                                   A need to 
       not generate the expected returns                         for transactions                                             execute 
                                                                  *    Investment in a larger Corporate                       successful M&A 
                                                                                                                              in 
  *    Disposal risks arise from failing to identify the                                                                      a 
       time at which businesses should be sold or failing to     Development team                                             competitive 
       achieve optimal price                                      *    Emphasis on and investment in carrying out external,   market 
                                                                       independent commercial due diligence at an early       combined with 
                                                                       stage                                                  robust 
  *    Group strategy relies on successful recycling of                                                                       risk management 
       capital and therefore M&A execution impacts core                                                                       and 
       strategy                                                                                                               controls means 
                                                                                                                              this 
                                                                                                                              risk is 
                                                                                                                              unchanged 
                                                              -------------------------------------------------------------  ---------------- 
 Board's view 
  The Board's focus on M&A combined with management's experience 
  enables the Group to remain disciplined in its approach, minimising 
  the risk of unsuccessful execution or a failure to make the 
  right acquisitions, or any acquisitions at all. 
 

Unforeseen tax liabilities

 
 Key factors                                                 Mitigation                                                         Risk appetite 
                                                                                                                                Risk averse 
  *    The Group operates within many increasingly complex         *    Audit Committee and Tax and Treasury Committee 
       tax jurisdictions                                                oversight                                               Prior years 
                                                                                                                                (relative 
                                                                                                                                position) 
  *    Changes in legislation and interpretation                   *    New Global Head of Tax and Treasury recruited in 2018 
                                                                        to lead dedicated Tax and Treasury team                 2017: Risk 
                                                                                                                                averse 
 
                                                                   *    The disposal of a number of businesses in 2018 has      2016: Risk 
                                                                        reduced the number of office locations globally         averse 
 
                                                                                                                                2015: Risk 
                                                                   *    Making financial provisions                             averse 
 
                                                                                                                                Post-mitigation 
                                                                  where appropriate                                             risk 
                                                                   *    Policy to comply with tax laws in a                     trend 
 
                                                                                                                                This risk is 
                                                                  responsible manner                                            increasing 
                                                                   *    Appropriate care taken to protect the Group's 
                                                                        reputation and have open and constructive               Description of 
                                                                        relationships with fiscal authorities                   risk 
                                                                                                                                change 
 
                                                                   *    Internal audit programme covers tax                     The Group is 
                                                                                                                                experienced 
                                                                                                                                at managing the 
                                                                                                                                tax 
                                                                                                                                risks arising 
                                                                                                                                from 
                                                                                                                                its 
                                                                                                                                international 
                                                                                                                                business 
                                                                                                                                portfolio. 
                                                                                                                                However, 
                                                                                                                                uncertainty 
                                                                                                                                over the terms 
                                                                                                                                of 
                                                                                                                                the UK's exit 
                                                                                                                                from 
                                                                                                                                the EU means 
                                                                                                                                this 
                                                                                                                                risk is 
                                                                                                                                increasing 
                                                            -----------------------------------------------------------------  ---------------- 
 Board's view 
  Effective controls are in place but the Group cannot eliminate 
  this risk entirely due to the complexity of the Group's structure 
  and the number of jurisdictions in which it operates. The 
  Group has made appropriate provisions for historical potential 
  liabilities in line with 
  advice from external advisors. 
 

Failure to implement the strategy effectively due to a loss of key staff

 
 Key factors                                                        Mitigation                                                         Risk appetite 
                                                                                                                                       Risk neutral: 
       *    The strategy is embedded across the                           *    Significant investment in staff budgeted for 2019       becoming 
                                                                               across a range of areas, including salary               more averse 
                                                                               benchmarking and training 
      Group and is having                                                                                                              Prior years 
      a positive impact                                                                                                                (relative 
      on financial performance.                                           *    Ensuring compensation for critical staff including a    position) 
      Its implementation                                                       balance of short-term and long-term incentives          2017: Risk 
      is partially dependent                                                                                                           neutral 
      on the retention and 
      performance of key                                                  *    Remuneration Committee oversight of Group Management    Post-mitigation 
      staff                                                                    Board rewards                                           risk 
       *    Our segments and divisions have individual strategies                                                                      trend 
            dependent on divisional staff with specific skills, 
            expertise and industry knowledge                              *    Investment in training such as Leadership 3.0 and       This risk is 
                                                                               Management 3.0 programmes                               unchanged 
 
       *    An inability to recruit, retain and train for                                                                              Description of 
            critical roles will adversely impact our ability to           *    Plan to launch an employee forum                        risk 
            deliver the strategy successfully                                                                                          change 
 
                                                                         during the year, allowing                                     Successful 
                                                                         for improved employee                                         implementation 
                                                                         engagement                                                    of the Group's 
                                                                          *    Proactive relationship management of recruitment        strategy 
                                                                               search companies to ensure our hiring needs are met     remains 
                                                                                                                                       dependent 
                                                                                                                                       on hiring and 
                                                                          *    New recruitment policy, process and                     retaining 
                                                                                                                                       key staff. The 
                                                                                                                                       Group 
                                                                         training to be rolled                                         has 
                                                                         out in 2019                                                   invested in the 
                                                                          *    Maintaining the Group's reputation for an               recruitment 
                                                                               entrepreneurial approach, making it an attractive       and training of 
                                                                               place to work                                           staff 
                                                                                                                                       and accelerated 
                                                                                                                                       succession 
                                                                          *    There are sufficient businesses within each segment     planning 
                                                                               within the Group to mitigate the impact of 
                                                                               'business-as-usual' departures of critical staff 
 
 
                                                                          *    Succession planning accelerated in 
 
 
                                                                         2018. Plans are now 
                                                                         in place for most 
                                                                         key staff and our 
                                                                         new succession planning 
                                                                         framework will help 
                                                                         businesses identify 
                                                                         and manage key staff 
                                                                          *    Contractual notice periods are designed to manage the 
                                                                               risk of critical staff leaving on short notice 
 
 
                                                                          *    Culture survey results have led to a number of 
                                                                               employee initiatives across the Group, designed to 
                                                                               improve career progression and staff retention 
                                                                   -----------------------------------------------------------------  ---------------- 
 Board's view 
  The Board recognises the importance of retaining critical 
  staff to ensure effective delivery of Group, segmental and 
  divisional strategies. A range of approaches are used to manage 
  this risk effectively, and succession planning accelerated 
  in 2018. 
 

Impact on people and operations of the UK exiting the EU

 
 Key factors                                                   Mitigation                                                         Risk appetite 
                                                                                                                                  Risk averse 
  *    The UK is scheduled to leave the European Union (EU)          *    Contingency plans seek to address the key risks and 
       in March 2019 and the potential consequences of that               leverage opportunities we identify                      This is a new 
       are unknown                                                                                                                risk 
 
                                                                     *    The Group is assessing the potential                    Post-mitigation 
  *    The terms on which the UK will exit the EU are                                                                             risk 
       unknown                                                                                                                    trend 
                                                                    impact on affected 
                                                                    staff                                                         This risk is 
  *    The length of any transition period following the             *    The Group has a global geographical footprint           increasing 
       UK's EU exit is unknown 
                                                                                                                                  Description of 
                                                                     *    Hedging is in place to partially offset the impact of   risk 
  *    There is no precedent data or facts on which to model              US dollar exchange rate risk in the UK                  change 
       the likely consequences of an EU exit, in particular 
       without agreed terms in place                                                                                              The possibility 
                                                                     *    A small percentage of Group revenue is generated in     of 
                                                                          the EU outside of the UK                                a 'nodeal' exit 
  *    The Group, its staff, customers, suppliers and other                                                                       is 
       stakeholders are unable to plan with precision for                                                                         increasing, 
       the uncertainty resulting from the above factors              *    Small number of EU nationals in                         leading 
                                                                                                                                  to increased 
                                                                                                                                  economic 
                                                                    our workforce                                                 uncertainty, 
                                                                     *    Potential travel disruption can be mitigated by using   therefore 
                                                                          international locations and planning longer lead-time   this risk is 
                                                                          for travel                                              increasing 
 
 
                                                                     *    We use geographically diverse 
 
 
                                                                    technology suppliers 
                                                              -----------------------------------------------------------------  ---------------- 
 Board's view 
  The Board notes that this risk is increasing for all UK companies. 
  The Company is carrying out contingency planning in a range 
  of areas in light of likely continued uncertainty in the UK 
  market during 2019. 
 

Ends

For further information, please contact:

Euromoney Institutional Investor PLC

Tim Bratton, General Counsel & Company Secretary: +44 (0)20 7779 8288;

About Euromoney Institutional Investor PLC

Euromoney is a global, multi-brand information business which provides critical data, price reporting, insight, analysis and must-attend events to financial services, commodities, telecoms and legal markets. Euromoney is listed on the London Stock Exchange and is a member of the FTSE 250 share index.

www.euromoneyplc.com

LEI number: 213800PZU2RGHMHE2S67

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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