Corporate governanceThe directors appreciate the importance of ensuring that the REA group's affairs are managed effectively and with integrity.
The board of REA currently comprises one executive director and five non-executive directors. The directors believe that the skills and experience of its different members complement each other and that their knowledge is of specific relevance to the nature and geographical location of the REA group's operations.
The board is responsible for the proper management of REA and has a schedule of matters reserved for its decision which is kept under review. The chairman and managing director have defined separate responsibilities under the overall direction of the board.
The board has appointed audit, nomination and remuneration committees to undertake certain of its functions with written terms of reference:
The REA group operates a continuous process for identifying, evaluating and managing the significant risks that it faces. The board regularly reviews the process and, assisted by the audit committee, the effectiveness of the group's system of internal control.
The board attaches importance not only to the control of risk but also to promoting an internal culture in which all REA group staff are conscious of the risks in their particular areas of activity, are open with each other in their disclosure of such risks and combine together to mitigate risk.