Principal risks

Understanding Balfour Beatty’s risk profile and establishing the most effective way to manage, accept or transfer risk is central to the Group’s decision-making process. As such, the Board has made a robust assessment of the principal risks which the Group faces, the controls in place to remove or mitigate these risks and also whether these risks represent new, increased or decreased threats.

The Group recognises that its risk profile comprises interlinked and discrete risks. The principal risks as set out below should therefore be considered alongside the viability statement on page 67 of the 2018 Annual Report and the discussion on financial risk factors and going concern on page 63 of the Report.