Customers are increasingly insisting on more onerous contractual terms relating to product quality and performance. We are
implementing a new APQP process, standard work instructions and lean manufacturing tools such as poka-yoke (quality system
with the goal of achieving zero defects), which will reduce the likelihood of issues arising and have taken increased insurance
cover in one higher risk area to reduce possible impact
We measure our progress in this area by tracking our lost time accidents (LTAs) per 100,000 hours worked. In 2014, the >1 day
rate improved by 15% relative to 2013. HS&E best practice sharing has been a source of this improvement and has included
a standardised process for near-miss and hazard reporting called SAFER (See and Fix Error Report) as well as the 5-Why Root
Cause Analysis, and investment in pressure testing safety systems and machine guarding
CHANGES DURING 2014
HEALTH, SAFETY &
ENVIRONMENTAL (HS&E)
CONTROLS
FAILURE OF OUR HEALTH,
SAFETY AND ENVIRONMENTAL
(HS&E) CONTROLS RESULTING
IN HARM TO EMPLOYEES OR
OTHER STAKEHOLDERS
We recognise that we have a duty of care to
our employees. Though we have made great
progress in recent years we understand the
impact on our employees from the failure
of this obligation and therefore still consider
this a key risk. Failure of controls could result
in injury, death and environmental damage
with the consequential impact of reputational
damage and risk of regulator action
RISK
MOVEMENT
• Introduction of lean manufacturing as one of IMI’s core processes
including 5S (housekeeping methodology for manufacturing areas)
and Gemba walks (management walks in manufacturing areas)
• Enhancement of standard work processes, new lifting and slinging
procedures and improved planning around plant layout
• Established global process in place to ensure that health, safety
and environmental matters are appropriately addressed and any
such risks are minimised including monthly reporting to, and review
at the Executive Committee
• Group and divisional level HS&E resource to proactively manage
and audit HS&E performance and to provide guidance and support
to site management
REGULATORY BREACH
FAILURE TO COMPLY WITH
LEGISLATION OR A BREACH OF
OUR OWN HIGH STANDARDS
OF ETHICAL BEHAVIOUR.
MAJOR PROJECT EXECUTION
WE FAIL TO DELIVER MAJOR
TRANSFORMATIONAL PROJECTS
ON TIME AND ON BUDGET.
We have set ourselves very high standards
in our approach to ethics and rejection of
corruption in business. We need to ensure,
as we expand our operations to achieve our
desired growth, that we maintain these high
standards. We face legislation around anti-
bribery, fraud and competition law and need
to ensure compliance otherwise we face both
financial and reputational damage
Whilst the external regulatory environment is increasingly more onerous, our processes and procedures are now more embedded
throughout the business. Access to the procedures is available world-wide on the Group intranet
The number of major change projects started in 2014 has increased significantly, particularly around IT projects, business
organisation and implementation on new Group-wide processes. As a result we have introduced bi-weekly process meetings,
overseen by the Executive, to ensure key improvement projects are on track, adequately resourced and monitored so that
resources are not overstretched
We will need to undertake a number of major
change projects in line with our strategic
objectives including business reorganisations
and implementation of IT systems. If we fail to
deliver the desired objectives it could have an
adverse financial impact on the Group
• Commitment to good governance practices which are embodied in
The IMI Way
• Further enhancement of the internal controls declaration process and
continued rigorous financial audits by our Group Assurance team
• The annual IMI Way Day was held in June across the Group and
included face-to-face training for all employees
• Policies, manuals, training and guidelines are available to all employees
under the legal & compliance and financial sections of the IMI global
intranet, which was launched in 2014
• Group, divisional and specific territory resources dedicated to legal
and regulatory compliance
• Training of employees focusing on how to apply The IMI Way in
everyday situations and key risk areas such as competition law,
fraud and anti-bribery and corruption
• Availability and promotion of the whistle blowing policy and the
confidential IMI hotline to report concerns
• Group standard operating procedures updated with increased rigour
around core legal and compliance processes
• We have introduced standard agency agreements and terminated
non-compliant agents
• Further upgrade of resources and talent in project management,
in particular around introduction of new Group-wide core processes
• Regular review of project progression by the Executive Committee
• Enhanced risk assessment process including full mitigation action
plans for all major change projects
• Group Assurance reviews of major new projects
RISK
MOVEMENT
RISK
MOVEMENT
CHANGES DURING 2014
CHANGES DURING 2014
RISK
RISK DESCRIPTION AND POTENTIAL IMPACT
MITIGATION
PRODUCT FAILURE
PRODUCT FAILURE LEADING TO
WARRANTY ISSUES, RECALL,
INJURY, DAMAGE OR DISRUPTION
TO CUSTOMER’S BUSINESS
We pride ourselves on the innovative
engineering solutions we provide for our
customers. The quality and safety of our
products is of the highest importance and if
we fail to deliver quality and safe products or
advanced technical solutions, then we face
the financial and reputational impact
RISK
MOVEMENT
CHANGES DURING 2014
• Continued focus on quality and safety, including audits to appropriate
quality standards
• Processes to mitigate the reputational and legal implications of any failure
• Upgrade of talent and focus on functional excellence in quality and
product development
• Contract management resources for both sales and purchases
• Development of Group-wide standard for advanced product quality
planning (APQP), which is being launched across the Group in 2015
31
Strategic Review
Performance Review
Corporate Governance
Financial Statements
Introduction
Annual Report and Accounts 2014
