potentially existential threats around climate change. and rules. This includes the compliance As a major international organisation and employer, by member ifrms of the network with audit we need to play our part in addressing these threats. independence rules and regulations Accordingly, this year marks the ifrst time we have formally recognised this risk within the network’s ■ Our ability to meet the evolving requirements of ERM structures and processes. regulatory and public policy PwC’s network ERM standard requires each ■ The compliance by member ifrms with member ifrm to develop an ERM programme applicable data management standards with roles and responsibilities for identiifcation, prioritisation and mitigation of enterprise-level risks. ■ The ability of member ifrms to safeguard and This programme identiifes the most signiifcant risks manage data appropriately that could impact the member ifrm, using the KNRs as a major input. For every risk identiifed, each ■ The quality of our information and cyber member ifrm is required to assess the probability of security processes and procedures the risk occurring, its potential impact, and whether the risk is operational, forward-looking or emerging, ■ The alignment of the behaviours of member and then develop an appropriate response. ifrms and our partners or staff with our values and societal expectations Material issues impacting stakeholders ■ The resilience of member ifrms to withstand economic, regulatory and political shocks The issues that are of concern to our key external stakeholders are assessed and taken into account as ■ The resilience of critical network and member part of the process to identify KNRs. ifrm technology systems These can be summarised as follows: ■ Our ability to attract, retain, train and deploy the right people to ensure quality delivery ■ The quality of work performed for clients and and innovation delivery of sustained outcomes ■ The maintenance of the PwC brand and the ■ Our compliance with international and local conifdence it gives to investors and clients in laws, regulations and professional standards our work and deliverables