Strategic report
Governance
Financial statements
91 OCU Group Annual report and financial statements 2026
Risks
The Group applies a comprehensive, Group-wide risk management framework, using a structured methodology to identify, assess and manage current and emerging risks. This supports disciplined decision-making and delivery of the Group’s strategic, operational and performance objectives. Risk management begins with the identification of current and emerging risks at operational and functional level across the UK and our international platform. Risks are assessed for potential impact, direction of travel and velocity, together with the effectiveness and timing of mitigating actions. This informs risk appetite and helps balance risk with opportunity as the Group expands its capabilities, markets and geographies. The Board periodically reviews the principal risks, focusing on those most relevant to strategic delivery and resilience. Overall responsibility rests with the Group Board and is delegated to the Audit & Risk Committee. The Committee reviews the principal risk register quarterly, supported by deeper reviews of selected risks and input from operational and functional leaders, maintaining clear oversight as the Group scales.
Health and safety Risk area: Operational
Commercial contracting Risk area: Strategic and commercial Potential impact
Securing value-accretive acquisitions Risk area: Strategic and commercial Potential impact
Potential impact The Group undertakes complex and potentially hazardous work across a
Insufficient review of scope, pricing or risk allocation may create unbalanced obligations, disputes, cost exposure or client dissatisfaction. As OCU delivers larger end-to-end projects across frameworks, private-sector projects and international markets, consistent contract governance is increasingly important.
Failure to identify, value, structure or integrate acquisitions effectively may dilute returns or expose unrecognised operational, cultural or regulatory risks. International expansion increases the importance of disciplined selection and integration.
broader range of projects, frameworks and geographies. Failure to manage health and safety consistently could cause serious harm to employees, subcontractors or the public, together with legal, financial and reputational consequences. As the Group scales internationally and integrates new businesses, maintaining common standards, behaviours and reporting remains critical. Mitigation Safety remains the Group’s first value and is embedded through the ISO 45001-certified management system, leadership site engagement and formal Stop Work Authority. OCU One supports real-time reporting and incident management, while quarterly stand‑downs and continuous training reinforce the OCU safety mindset. During FY26, these controls continued to be extended across the growing platform, supporting continued improvement in safety performance.
Mitigation Defined approval thresholds and cross- functional review by commercial, operational, legal and finance teams govern contract risk. Monthly contract performance reviews, supported by integrated systems and Power BI reporting, provide timely visibility and corrective action. Commercial Conduct guidance, training and clear contractual red lines reinforce consistent decisions.
Mitigation Acquisitions follow structured strategic, financial, commercial and cultural diligence, supported by internal specialists and external advisers. A defined integration playbook aligns finance, commercial, technology, people and safety controls. During FY26, this approach supported the development and integration of OCU’s Australia and New Zealand platform.
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