This section identifies the main risk factors that may affect the British American Tobacco Group. The following list provides links to brief descriptions of the key risks to which the Group’s operations are exposed and identifies, in each case, their potential impact on the Group and the principal processes in place to manage the risk:
It is not the intention to provide an extensive analysis of all risks affecting the Group. Not all of the factors listed are within the control of the Group and other factors besides those listed may affect the performance of its businesses. Some risks may be unknown at present and other risks, currently regarded as immaterial, could turn out to be material in the future.
The risk factors listed in this section and the specific processes in place to manage them should be considered in the context of the Group’s internal control framework, which is addressed in detail in the statement on internal control in the Corporate governance statement. This section should also be read in the context of the cautionary statement regarding forward-looking statements below.
In 2008, a review of the Group risks, including those arising from the current macroeconomic situation, and the mitigation plans in place to address them was undertaken. The Group risk register was reviewed by the Audit Committee in December 2008 and will continue to be reviewed by it at 6 monthly intervals.