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BUSINESS MODEL
AND STRATEGIC
OBJECTIVES
LEADERSHIP
GOVERNANCE
SHAREHOLDERS’
INFORMATION AND
ADMINISTRATION
OPERATING
PERFORMANCE
FINANCIAL
PERFORMANCE
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
15
MATERIAL IMPACTS
AND RISKS
CONTINUED
Risk
Context
Mitigating factors
Declines
in interest
rates
As the Group is highly
liquid, declines in interest
rates have an effect on
finance income.
Wherever possible, free cash flow is utilised for early
settlements or bulk buying in order to obtain discounts in
excess of prevailing interest rates.
Further
increases in
rand/foreign
exchange
rates
Changes to the rand
exchange rate affect the
results reported from, and
any refinancing required by,
associate and joint venture
companies in the UK, India,
Mauritius
and Mexico.
Associate and joint venture companies in the UK, Mauritius
and India are not expected to require any further financing.
Every effort will be made to secure the best available foreign
exchange rate in any further financing required in Mexico.
Non-
compliance
with legislation
Non-compliance with
legislation applicable
to the Group could
lead to fines and negative
reputational impact, i.e.
POPI, CPA, WASPA
legislation, Companies
Act, Income Tax Act, Value
Added Tax Act, JSE
Listings Requirements,
OHSA, BEE Act,
Employment Equity Act,
industry charters and
scorecards.
Legislation that affects the Group is identified, analysed
and categorised according to its impact and relevance. The
process is ongoing to test and ensure ongoing compliance
on an operational level.