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sustainability & governance
Annual Report 2017
69
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
The ERM assessment was conducted through a combination of workshops and interviews involving senior management and the key
enterprise risks facing the Group’s business units are then reported to the Audit Committee on every quarter. The workshops and
interviews conducted have generated the following reports:
• Detailed risk register
• Risk Parameters
• ERM Report
These reports were summarised as risk profile and provide the basis for the following:
• Business action plans and improvement strategies;
• Developing cost effective control strategies; and
• Prioritisation of areas for operational audit.
All subsidiaries within the Group will update their risk profile to the RMC on an annual basis.
An overview of the Group’s risk assessment process is depicted as follows:
The top five (5) risk factors of the Group after considering its likelihood and its impact from both a financial and/or non-financial
standpoint are as follows:
Broad risk area
Sub-broad risk
Key mitigation measures
Operational
Global, regional and/or local economic slowdown
factors adversely impact commodity prices,
customers demand and costs.
Business interruption,
pricing and marketing.
• Monitoring of market/economic conditions.
• Strategic business plan based on market
conditions.
• Key marketing strategy for each division.
Environmental
Erratic weather conditions
Business
interruption
due to damages to
assets
• Continuous
preventive
and
corrective
maintenance programmes and exploring new
methods to mitigate drought conditions.
Finance
Volatile exchange rates for import and export
Foreign exchange
• Foreign currency bank accounts.
• Foreign exchange hedging.
Human Resource
Failure to recruit and retain key staff.
Succession planning
• Talent management and succession planning
framework, policies and talent mobilisation.
• Revised remuneration and rewards programme.
• Annual key performance indicator and appraisal
for each personnel.
Preparation
Control Assessment
Define processes/ activities/objectives
Identify controls
Identify risks
Determine control effectiveness
Determine risk rating
Determine current residual risk
Risk Profile