including consideration of strategic risks and input ■ the conifdence of clients and other key to the network ERM programme. The Network Risk stakeholders (including regulators and Council is composed of the Global Markets leader; governments) CRO; Chief Administrative Ofifcer; Global Chief Information Technology Ofifcer; Global General ■ legal and regulatory compliance across the Counsel; Chief Ethics & Compliance Ofifcer; Global network Clients and Industries leader; Purpose, Policy & Corporate Responsibility Leader; and the Global ■ achievement of the network strategy, including Security Leader. its purpose The PwC network and member ifrms take a rigorous ■ the ability of member ifrms to recruit and retain approach to ERM. The risks with the highest potential key talent in signiifcant parts of the business impact for the PwC network are identiifed on an annual basis. These key network risks (KNRs) and their related The current KNRs are as follows. signiifcant mitigation plans are reviewed by the Global “In a rapidly-changing world, it is vital Board and speciifcally its Risk Committee. Quality and compliance: that we work together as a network to understand the risks faced by PwC and KNRs are identiifed as risks which have the potential ■ Client and service quality: Failure in client implement effective responses to mitigate to either: acceptance or continuance, or failure to them. A key part of that mitigation is how manage service delivery quality in existing and PwC communicates and engages with our ■ undermine the achievement of the network new services with cross-border and network key stakeholders across the world.” strategy and business objectives, or implications Paddy Carney, ■ fundamentally damage the network and ■ Compliance: Failure to manage and comply with FY21 Chair of the Board of PwCIL compromise its future legal or professional requirements, including local Risk Committee policies and standards, leading to regulatory In assessing the signiifcance of risks, consideration is action and/or signiifcant conlficts of interest given to the impact on: ■ Independence: Failure to comply with external ■ revenues across the network of ifrms independence requirements and/or manage the ongoing complexity and changes in ■ client and service quality, and the network’s independence regulations, while attempting ability to fulifl its obligations to regulators, clients to grow the business in new areas and meet and stakeholders changing expectations