Risk management committee

The board is responsible for overseeing the risk management processes in the group in accordance with corporate governance best practice. This is achieved through the risk committee. The committee comprises two executive directors, Kobie Botha (chairman) and John Abbott, plus operational directors Terry Armstrong and Paul Foley. The committee convened thrice this year to receive feedback from the operational risk committee and to consider the groupís strategy on risk and the management of that risk. The committee reported to the board setting out its initial evaluation of the risks faced by the group and the recommended strategies for mitigating the impact of these risks to the group. Responsibility for risk identification, evaluation and management remains with the board.

The operational risk committee comprise members of the groupís senior management. These members are representatives of the financial, information technology, internal audit, quality assurance, insurance, commercial, environmental and safety areas of the business.

The risk committee is governed by a charter which outlines its primary objectives namely to:

  • Establish and maintain a common understanding of the risk universe, which needs to be addressed in order to meet corporate objectives;
  • Ensure that a proper business risk assessment is carried out and that a risk profile is compiled by management;
  • Monitor the groupís risk management and assurance efforts; and
  • Satisfy the corporate governance reporting requirements.