Comprehensive Governance and Risk Management Audit of an Organization

This report presents a comprehensive governance and risk management audit of an organization, focusing on the John Lewis Partnership. It explores commitments to social responsibility, financial accountability, and risk management strategies. The report examines the company's products, services, and consumer relationships, analyzing the management structure and risk assessment processes. It provides an overview of the organization, its advertised values, and its processes for promoting, monitoring, and reviewing its commitments. The report also reviews the company's history, integrity, and identifies key issues, offering a detailed analysis of the company's approach to governance and risk management, providing valuable insights into its operational strategies and financial performance.

A GOVERNANCE AND RISK MANAGEMENT AUDIT OF AN
ORGANIZATION

Executive summary
The main aim of this report is to provide the importance of a governance and the process of risk
management in an organization. Governance and risk management auditing is a process which
determine external and internal flexibility of an organization value. Risk management is a
process through which organization determined the threats and risk. The report include social
responsibility organization and also the importance of advertisement in increasing the value of an
organization. Different challenges and commitment has been summarized in this report.

Table of content
Introduction....................................................................................................................................4
PART A..........................................................................................................................................4
1. Commitments and social responsibility.....................................................................................4
2. Level of financial accountability and responsibility of the organization......................................5
3. Risk in the organization.............................................................................................................6
4. Products and services of the organization.................................................................................7
5. Consumers of the organization..................................................................................................7
6. Management structure and risk assessment.............................................................................8
Part B.............................................................................................................................................8
1. Give an overview of the organization.....................................................................................8
2. ‘Advertised’ values of the organization......................................................................................9
3. The processes of the organization in promoting, monitoring and reviewing its commitment. .10
4. Review the history of the organization.....................................................................................10
5. The company’s integrity...........................................................................................................11
6. Identified key issues, discuss them.........................................................................................11
Conclusion...................................................................................................................................12
References..................................................................................................................................13

Introduction
A governance and risk management audit always begins with the people and processes. This
report includes the value and risk audit of an organization. Governance and risk management
auditing is a process which determine external and internal flexibility of an organization's value
base. Governance involves giving directions, determining the resources and risk monitoring, the
performance in order to achieve the objective of an organization. Risk management is a process
through which an organization can determine the threats and danger towards the organization
which can come from failure of the project, uncertain accident, legal risk, duplication of the
products, etc. Diffusion Company focuses on identifying the risk and managing them before they
affect the organization. This report the John Lewis Partnership has been chosen the report
discusses the financial position of the organization. The report discusses the social responsibility
of John Lewis partnership and also discusses the risk within the organization. In addition it also
discusses the history of the organization and its integrity.
PART A
1. Commitments and social responsibility
John Lewis partnership is an employee owned company in UK which operates departmental
stores, partner supermarkets, its Financial Services and all its retail activities. In the words of
Paltrinieri et al. (2015), this Company has been owned by trust this is the third largest company
in UK. John Lewis partnership has open its first shop in London Oxford Street in 1864. The
company has more than 336 branches and 61000 partners. This company also provide insurance
products along with it offered travel, wedding, and Home Insurance as well as travelling
services. The company focuses on giving the products at very low price in the community
especially for the middle class people. The main purpose of the company is to provide happiness
to all the customers by providing their useful products at a very low price. In the words of Bush

et al. (2015), this company has committed to create a zero emission fleet by 2045. John Lewis
Partnership set an aim of cutting of its carbon footprint by 2028 by one third. This company
wants to achieve carbon neutral transport fleet without using carbon offsetting scheme by 2045.
This accompany has 3200 fleet. The company commits to supply the best quality of products and
remove all the artificial colors from the brands. In the words of Ellul et al. (2015), the mission of
John Lewis Partnership improve and maintain their place as a retailer and a successful employee
ownership. Its main mission to provide a low price of the products in the community to the
middle class people which help the company in establishing strong image of the organization in
the British market. The consumer can buy product from its stores name John Lewis stores. The
strategy of the company is to give all the consumers happiness by providing a good product at a
low price and to improve and maintain its position in the market as a retailer and as a successful
employee ownership. This company have the responsibility towards stakeholders that are
suppliers, community, employee’s customer, dealers the government and the shareholders. The
company works with Non-governmental companies groups and many other organization and
discuss on the issues with the business functions and its values which helps the company in
identifying its corporate social responsibility policies. In the words of Zaidi et al. (2015), its
responsibility include sustainability of fish and Timber by working with Greenpeace. It also
work with the committee in order to sustain the palm oil and LEAF (linking environment and
farming). This company is also a member of the British retail group which is one of the leading
trade Organization in UK and also works with many charities such as business in the community.
2. Level of financial accountability and responsibility of the organization
The profit of John Lewis Partnership is lower comparing to the challenging year in nonfood
products. The operating profit of the company has been recovered which increases 18%
(£203.2m) because of increasing gross margins then it is decreases by 56%(£114.7m) because of
weaker home sales, higher cost and pressure of gross margins. This property has a great impact
on the new shops and sales. The company has managed to reduce net debts by £401.3m. Weight
loss and partners increases the operating profit by £31.2m and £203.2m. After including
partnership bonus and exceptional income deposit before taxes the company was £117.4m, up

£9.9m or 9.2% on last year. Company also invested in products and services, in transformation
of business, in leaders is training. The big portion of IT investment is revenue investment. John
Lewis Partnership has revealed that it has hit the target of 65% in reducing the carbon intensity.
This company has adopted the process of using renewable electricity and become the first retailer
to use dedicated gas truck that can run on biome thane. The company has maintained total
investment around £400m. The operating capital investment of John Lewis Partnership was
£310.1m it also decreases by 14.9% on last years. In the words of Gatzert et al. (2016), the
company committed to building return on capital and a long term financial sustainability which
enable the organization making a platform of a strong balance sheet. This can only be measured
by three key performance indicators - return on investment capital, profit per average FTE and
debt ratio. The company remain focused on reducing debt ratio within 5 years. The company
wants to reduce the debt by three times of the cash flow. it remains at 4.3 times this year, the
total debt has been reduced by £401.3 M £2682.2m. In the words of Hutter et al. (2016), the real
discount rate used due to reduction in accounting pension deficit in order to give value to the
liabilities and to increase in pension assets. Return on investment capital and average FTE
measures are lower comparing to the 2017 and 2018. This company were taken an action in
order to restore the return on investment capital and profit per average FTE which will increase
investment and bonus level.
3. Risk in the organization
John Lewis Partnership has faces risk in strategic management. Its faces risk in shift of demand
of the consumer and their test and preference. The needs and demand of the consumer changes
time to time. It also faces competition in the market, it has many competitors who can easily
provide substitute products and services of John Lewis Partnership products but the strategy of
John Lewis Partnership has made the company a successful retailer. It also faces challenges in
adopting new technologies, during the technological changes this company faces challenges in
adopting the new technologies as the competitors. In the words of Lebedeva et al. (2016), it also
faces a huge pressure from its stakeholders. The company has many third party such as vendors,
suppliers Transporters, manufacturer, distributor and the third party service providers which can
increase the risk of fraud that cannot be identified easily. This company has identified theft of

goods, corruption in last 2 years. The supply chain management is a new fraud risk such as
duplication of products of John Lewis Partnership. This company has taken action in order to
protect its brand from unauthorized online sale who can easily sell branded products at a very
high discount. The company has taken action against duplication and it has save at least INR
1000 crore in last 2 years.
4. Products and services of the organization
The John Lewis Partnership offers branded products from the top suppliers and own brand
merchandise. It provide high quality of product and at a very low cost. It has a large variety of
products in its stores which includes electronics, clothes, Kitchenware, home and garden,
appliances, furniture, children clothing, toys and more. The John Lewis Partnership has launched
their own credit card with HSBC, they launched that card in order to provide a cashback on
payment through credit card to the consumers and also offer a variety of rewards and vouchers
on purchase. In October 2006, the company has also started providing insurance product. In the
words of Jensen et al. (2015), this company offer wedding, travel, home insurance and also
provided travel and ticket services. This company provides car insurance and pet insurance.
Home telephone services and broadband was also provided by the company to its consumer. The
company also provide online order options on Waitrose groceries which provide the consumer
variety of discounts and vouchers on purchase.
5. Consumers of the organization
The John Lewis Partnership have gain many consumers and their trust by providing high quality
of products at a reasonable price and variety of services to all its consumers. The company
provided consumer happiness by providing high quality of goods and services. This company has
increase its customer base by provide cards, discounts and vouchers and focuses on giving
discount and incentive on shopping to every consumers. This company provide the best customer
services, the consumer of the company has rewarded John Lewis Partnership as one of the best

customer service provider in their shop. This company always used to ask to their consumers
how to improve their services better and through their feedback the company has changes its
environment accordingly. In the words of Alreemy et al. (2016), the company also offer its
consumers the new train for browsing and they can purchase product online and its consumers
buy most of the products through online, they also reviewed that company has the most flexible
delivery and collective services, the company provides free delivery to every consumers. They
deliver products to their consumer according to the preference of consumers. John Lewis in
2010, has increases its multichannel consumers from 7.3% to 12.6 7% of the total consumer base
which then increases to 27%. The consumer of John Lewis opportunity to buy among 350000
products.
6. Management structure and risk assessment
John Lewis Partnership employees are its partners. Game Rise of the organization of the power
and the opportunity to handle the business and all the rest issues and problems. The
representative of the organization which has been selected by the partners and appointed by the
chairman has taken the responsibility of the social activities and charitable actions. The John
Lewis partnership board contains five directors which was selected by partnership Council and
the remaining five was elected by the chairman. The organizational structure of the company
assure that all the partners have a channel which can provide suggestions to the management.
The management of organization develop and maintain a continuous relationship with the
suppliers, employees and the consumers. In the words of Ackermann et al. (2016), the
management of the organization has applied risk assessments in order to use management tool
which identifies the risk and need of new technologies and procedures to decrease the risk from
the workplace, through this the manager of this organization get to aware of the situation and risk
happening and also enable the manager to take necessary actions.

Part B
1. Give an overview of the organization
John Lewis PLC operates different department stores and supermarkets in United Kingdom, in
this stores the company provides large variety of products which includes home appliances,
accessories, electronics, DIY products, laundry products, furniture products, leisure, travel and
luggage, craft product, clothes for men, women and kids, children products and many more. It
offers its customers more than 3,50,000 products. Print advertising is an expensive process of
advertisement but one of the effective advertisement which has been applied by the John Lewis
Partnership in order to promote its product. This company has promote its product through
Twitter, Facebook and YouTube and also discover smartphone applications for the consumers in
order to attract them. This company has made special advertisement during the festival season,
from the last 10 years the company is creating advertisement during the Christmas. In the words
of Patón-Romero et al. (2017), the company have millions of viewers on YouTube. It has also
adopted a new promotional tool that are joint promotion with attract the consumers to buy more
products and services along with the offers, discount, vouchers and free purchase. This company
has more than 38000 employees. The staff of this organization are well trained and the company
focus on personal goal of its employee. In the words of Aven et al. (2016), the company also
promote itself to its owner by showing its large number of consumers, profit, methods of
advertising and its financial position in the market.
2. ‘Advertised’ values of the organization
The Advertisement in John Lewis PLC includes a way to communicate with the target
consumers by explaining the value of its brand. In the words of Dieperink et al. (2018), the John
LewisPLC has applied advertising in order to promote its products which give value to the
company services and its product. A television is the best way to show the value of the brand.
The company has gained consumer attention advertising the image and value of its brand the
company has used radio, print ads, dialogue, televisions in order to define brand value and its

products and also includes the benefits of the products to the consumers. This advertisement
plays a very important role in building the reputation of John LewisPLC. In the words of Ban et
al. (2016), the sale of the company has increases through the advertisement. It enabled the
organization to communicate directly with the consumers. It helps in developing awareness
about the product and the brand value among the consumers. The overall effect of an adverb. Is
to increase the large number of consumers and also gain loyalty of the consumers.
3. The processes of the organization in promoting, monitoring and reviewing its
commitment
The management and employee of the organization used to keep all the records of its
commitment which has been made before. The employee of this company keep checking on the
records and also ensure that the commitments which has been made are full feeling or not. This
company has given the power to its employee to check and observe the record of the
commitments and take necessary actions accordingly. In the words of Melloni et al. (2016), the
Management Committee of the organization use record and annual report analyses the review
progress of the organization in order to meet the objectives of the organization. In order to
promote its product the company also take commitments for the betterment of the organization
and its consumer.
4. Review the history of the organization
The John Lewis PLC is an employee owned company in United Kingdom. In the words of
Zwikael et al. (2015), the John Lewis Partnership is the third largest private company in UK.
Over hundred years ago the founder of the company Johnson and levels start an experiment to do
the business in a better way by including the staff and its employee in decision making process.
This company wants happiness of all the members and give satisfaction all the employees. In
2013 the John Lewis Partnership Heritage Centre opens to the odney club in Cookham. In 2016
company opens John Lewis magna park distribution center. In 2018 John Lewis rebrand to John
Lewis and partners and Waitrose and partners. The company commits to double its consumers in

2010. In the words of De Haes et al. (2015), in 2012 the company comments to 30% of indoor
furniture but 20% of indoor furniture actively progressed. This company commits to work with
more suppliers in order to improve the development of the material of its own brand products.
2012. The Company committed to building return on capital and a long term financial
sustainability which enable the organization making a platform of a strong balance sheet. This
company has committed to create a zero emission fleet by 2045.The company works with Non-
governmental companies groups and many other organization and discuss on the issues with the
business functions and its values which helps the company in identifying its corporate social
responsibility policies. Its responsibility include sustainability of fish and Timber by working
with Greenpeace.
5. The company’s integrity
The John Lewis Partnership is an honest company. It’s am to be honest with consumer in order
to gain the loyalty and trust of the consumer by providing high quality of products and services
according to their taste and preference. The company's purpose is to give happiness to all is
consumer by satisfying their needs and decreasing unemployment because the company own the
honesty of its employees and staff and discuss the responsibility of ownership and its profit. The
company in store conservation profit from its operation of sustainability in order to distribute a
part of those profit to its members. This company also aims to employ who are able to do the
work and are honest to their commitments in order to support its principle. The company aims to
reward all the organization fairly.
6. Identified key issues, discuss them
The main challenge facing the John Lewis Partnership is to sustain the current position in the
market because the company has the best customer experience brand in the UK and has gain a
great position in the second challenges faced by the company is Omni channel experience in
which the business faces issue is that the consumer cannot see business an interaction channels.
This consumer used to see the business as one business, the consumer expecting a huge from the

business. The consumers expect that when they using the channel of their choice it should
connect to the same business and the result must fulfill their need and expectations.