Incidents of sophisticated cyber-crime represent a significant and increasing threat to all businesses including the Group. Supplier dependency could result in shortages of product Inherent Risk: Medium Trend: Static The Group is the largest customer to many of its suppliers. By their nature, strategic projects are often complicated, interlinked and require considerable resource to deliver them. Given the current uncertainty interest has been fully accrued in the financial statements. The number of outlets and channels where building materials can be purchased continues to grow with new competitors also entering the market. However, it will take to the decrease of authorities outgo on building Key Note, 2013. All these issues bring a cost efficiency and better relationship with co-workers and clients which will do the Group more attractive to make concern with.
The Group has been reliant on the banking market for funding, a market that has contracted in recent years and which may continue to contract in the future. The Group continues to invest in its leading supply chain infrastructure. The repayment plans will remain in place until the next actuarial valuation, when in conjunction with the Scheme Trustees they will be reassessed to take into account the circumstances at the time. Competitive pressures Market trends, particularly in respect of customers' preferences for purchasing materials through a range of supply channels and not just through our traditional competitors may affect the Group's performance so making traditional branch based operations less relevant. This has increased the Group's exposure to sourcing, quality, trading, warranty and currency issues, which again may lead to an adverse impact on customer service. Adverse effect on financial results Changes to market practice are tracked on an on-going basis and reported to the Board each month. However, regardless of the approach that is taken, the Group must accept a certain level of risk in order to generate suitable returns for shareholders, and for that reason the risk management process is closely aligned to the Group's strategy.
There is a potential for European anti-dumping legislation to be extended to encompass further Asian countries which could increase the cost of some imported products. For example, when you search for a film, we use your search information and location to show the most relevant cinemas near you. Increased price transparency could cause customers to perceive that the Group is less competitive than some other competitors. Off-site back-up routines are in place. Maintenance is undertaken on an on-going basis to ensure the resilience of group systems, with escalation procedures operating to ensure any performance issues are resolved at an early stage.
Adverse effect on financial results Changes to market practice are tracked on an on-going basis and reported to the Board each month. The development of new, innovative and competitive supply solutions is a key strength of the Group. The Group's legal team is responsible for monitoring changes to laws and regulations that affect the business. This risk register is used to determine strategies adopted by the Group's various businesses to mitigate the identified risks and are embedded in their operating plans. Incidents are monitored, investigated and corrective action taken to reduce the likelihood of similar incidents in future. The Group's branding strategy allows it to use sites flexibly.
The Group is building multi-channel capabilities that complement its existing operations and provide its customers with the opportunity to transact with the Group through channels that best suit their needs. Ensuring the retention and proper development of employees and succession for key positions is important if the Group is not to suffer an adverse effect on future prospects. The development of new, innovative and competitive supply solutions is a key strength of the Group. The Group's strategy allows it to use sites flexibly. Page and note references in the text below refer to page numbers in the Annual Report. Pricing strategies across the Group are regularly reviewed and where necessary refined to ensure they remain competitive.
Inherent Risk, Level and Trend Risk Description Impact Risk mitigation Market Conditions Inherent Risk: High Trend: Increasing The Group's products are sold to businesses, tradesmen and retail customers for a broad range of end uses in the built environment. Adverse effect on financial results. Maintenance is undertaken on an on-going basis to ensure the resilience of Group systems, with escalation procedures operating to ensure any performance issues are resolved at an early stage. The inherent risk before the operation of control is stated for each risk area together with an indication of the current trend for that risk: Inherent Risk and Trend Risk Description Impact Risk Mitigation Market Conditions Inherent Risk: High Trend: Static The Group's products are sold to businesses, tradesmen and retail customers for a broad range of end uses in the built environment. The Travis Perkins cash flow statement helps investors understand how well the company is managing its cash flows. As such the list below should not be regarded as a comprehensive statement of all potential risks and uncertainties that may manifest themselves in the future. The Group has agreed deficit reduction payment plans for each of its defined benefit pension schemes with the Trustees of the schemes.
Adverse effect on financial results. The Group has a governance structure that requires specialist third party technical advice to be obtained on significant tax treatments before the Board of Directors agrees to the tax position to be adopted by the Group. Like Oath, our partners may also show you ads that they think match your interests. Adverse effect on financial condition. The ability to recruit, retain and motivate suitably qualified staff is an important driver of the Group's overall performance. Off-site back-up routines are in place. The Group is building multi-channel capabilities that complement its existing operations and provide its customers with the opportunity to transact with the Group through channels that best suit their needs.
Many of them have worked for Travis Perkins for some considerable time, during which they have gained valuable knowledge and expertise. Scale advantage has do an efficient supply concatenation to derive client trueness. The Group has a data security committee responsible for monitoring and maintaining cyber security. Its capabilities in this area allow it to source directly from manufacturers, offer superior availability to customers and operate cost efficient mechanisms to deliver products to customers when they most need them. The risk environment in which the Group operates does not remain static.
Notwithstanding this, the Group remains exposed to movements in member longevity, the value of pension scheme investments and falling corporate bond and gilt rates. Risk Description Impact Risk Mitigation Market conditions Direction The Group's products are sold to tradesmen and retail customers for a broad range of end uses in the built environment. The table on pages 34 to 39 sets out, in no particular order, the current principal risks that are considered by the Board to be material, their potential impacts, the factors that mitigate them and those areas of the businesses' strategies they potentially impact. Therefore, Travis Perkins realigned the divisional construction into four sections General Merchanting, Specialist Merchanting, Consumer and Plumbing and Heating Annual Report, 2013. Ensuring the retention, proper development of employees and that robust succession plans exist for key positions is important if the Group is not to suffer an adverse effect on its prospects. Dedicated teams, including financial resource, are allocated to each project, with additional expertise being brought into the Group to supplement existing resource when necessary. In accordance with rule 6.