The Board is responsible for Rotork’s system of risk management and internal controls. The Board’s annual review of the system’s effectiveness is completed with the assistance of the Audit Committee.

During 2024 the Board and Audit Committee regularly considered matters relating to the Group’s risk management and internal control systems. Further details of reports undertaken and reviewed are set out in the Audit Committee report on pages 121 to 125 of the Annual Report.

Main features of the Group’s internal control systems

Audit Committee papers and meeting minutes are made available to Board members who are not members of the Audit Committee, unless in the opinion of the Committee Chair it would be inappropriate to do so. The meeting papers detail the Audit Committee’s annual review of the assessment of the effectiveness of the Group’s risk management and internal control systems. The Chair and executive directors are invited to attend Audit Committee meetings with other members of the senior leadership team presenting or attending as necessary.

Key elements of the control environment, which enable Rotork to respond appropriately to all types of business risks, include:

• An established group risk management process to identify and respond to risks
• A Code of Conduct supported by Group-wide policies and procedures, including authority levels and division of responsibilities
• Training of staff on policies and procedures relevant to their roles
• Ongoing monitoring of business performance, including Key Risk Indicators
• A formal schedule of reserved matters for the Board, including responsibility for reviewing Group strategy
• A speak up policy, with an external speak up helpline, the results of which are reported to each Board meeting
• Assurance processes over key risks and controls reported to the Audit Committee