Managing our risks and corporate governance
British Patient Capital operates within the Risk Management and Governance Framework of the British Business Bank.
A full description of the Risk Management Framework of the British Business Bank is included within its Annual Report. The main aspects of the framework are:
- a collection of tools, processes and methodologies to identify, assess, monitor and control risks
- a Risk Appetite Policy which British Patient Capital is subject to; however, the British Patient Capital Board approves the company’s own Risk Appetite Statement
- risk governance based on the ‘three lines of defence’ model
- a wide range of policies, frameworks and procedures which take account of regulatory or legal requirements and industry best practice.
The key operational risks the company is exposed to are:
- maintaining a suitably qualified investment team and Board to deliver the Company’s investment strategy
- ensuring systems and processes support investment decision-making, reporting and portfolio management
- procuring appropriate support across a range of services from British Business Bank plc including: finance, legal, risk, IT and communications.
The key financial risks the company is exposed to are detailed in note 13(iii) of the accompanying Financial statements.
While British Patient Capital is not required to comply with Section 172 of the Companies Act 2006, all decisions taken by the Board during the reporting period took into account Section 172 duties.
British Business Bank plc is the ultimate parent of British Patient Capital Ltd and the policies and procedures that apply to the British Business Bank also apply to British Patient Capital.
British Patient Capital’s constitution consists of its Articles of Association and a set of key principles adopted by the Board to govern the relationship between the British Business Bank and British Patient Capital.
The Board of Directors of the Company
The composition of the Board is set out in the Directors’ Report. The Company’s Articles of Association require that no more than one-third of the Board may consist of members of the British Business Bank plc Board.
The CEO of the British Business Bank (who is the Accounting Officer of the British Business Bank group for the purposes of HM Treasury’s ‘Managing Public Money’ handbook) is an Executive Director of the Board of British Patient Capital. She has direct accountability to British Patient Capital’s ultimate shareholder, Department for Business, Energy & Industrial Strategy (BEIS). The responsibilities of an Accounting Officer include the propriety and regularity of the public finances for which the Accounting Officer is answerable, keeping proper records and safeguarding the British Business Bank’s assets.
Audit and risk
The new Chair, Russell Cummings, formerly a Non-executive Director of British Patient Capital Ltd, serves as Audit and Risk Champion, attending meetings of the Audit and Risk Committees of British Business Bank plc, as needed, to discuss relevant matters.
The members of the Investment Committee are the British Patient Capital CEO, Judith Hartley, and the British Patient Capital Executive Director, Catherine Lewis La Torre. The Chief Risk Officer, the Chief Financial Officer and the General Counsel of the British Business Bank (or their delegates) attend all meetings of the Investment Committee. Certain investments also require the approval of the Board and/or the Board of British Business Bank plc.
Approved by the Board of Directors.