Page 20

AFRICAN DAWN ANNUAL REPORT 14

Corporate Governance continued • Risk management There was no separate risk committee and the audit committee assumed the responsibility and task. The responsibilities include, ensuring that management’s processes and procedures are adequate to identify, assess, manage and monitor, Company specific and Group risks; The following risks received detail attention and mention: • Financial / Liquidity risks, • Information Technology risk • Human resources risk • Operational risk • Legal/compliance risk Managers are urged to identify, report and assist with mitigating controls and procedures to lower the risk to acceptable levels. 7. Risk Management The Board is ultimately responsible for the management of risk. Due to the importance and need for good governance it is assisted by the audit and risk committee. The management of risk has included a proactive approach through an implemented system of effective internal controls maintained and constantly improved by competent ethical managers. The management of risk relies on well-established governance processes and relies on both individual responsibility and collective oversight, supported by comprehensive reporting. The risk approach is one of strong corporate oversight, with the executives having proactive participation in managing the risks, sub committees are responsible to identify and contribute to mitigating strategies to manage risk to an acceptable level. Risk management is seen as the responsibility of each and every employee. The significant risks are formally communicated to the Board (via the audit and risk committee), in minutes of meetings and the risk register, which monitors that risks taken are within acceptable tolerance and appetite levels. The risk appetite is the maximum residual risk that Afdawn is willing to take, the parameters being set by business strategies, business models, review and approving budgets, forecasts and monthly management packs. Risks pertaining to the Group as a whole, but especially focused on liquidity, asset management, credit risk, market risk and human resources, are noted and managed on an in-house risk register presented at monthly Exco meetings. The identified risks, their likelihood of occurrence, severity if occurred, mitigating control and the risk management outcome are discussed on a monthly basis. Risks on the register are ranked and prioritized ensuring swift response and intervention to risks outside the Board’s tolerance levels. Liquidity risks are managed on a short term, and long term basis ensuring pairing of known cash in and outflows, with predictions of expected cash flows. Credit risk is formally managed by the credit committee, who is tasked with managing advances in such a way to ensure repayment of capital plus earnings, and to assess the outstanding value with expected repayment and manage collections of outstanding debts. 8. Social and Ethics Committee During the year a formal social and ethics committee was established with an approved terms of reference. The committee considered matters relating to good corporate citizenship, employment equity, empowerment and socio-economic development and contributing to society in general. The primary purpose of the committee is to ensure the wellbeing of the Company, its employees, stakeholders, clients, society and monitor ethical practices in all areas. The social and ethics committee met once during the year under review and comprised of Mr. WJ Groenewald (chairman), Dr. GE Stoop and Mr. TF Kruger. Details of actual meeting and the attendance thereof is set out in the table below. TF Kruger WJ Groenewald GE Stoop Subsequent to the year end, Messers Kruger, Groenwald and Stoop stepped down from the committee and Mr. SM Roper (chair), Mr. JK van Zyl and Ms. A Böhmert were appointed in their stead. AFRICAN DAWN 1 7 ANNUAL REPORT 2014 28 August 2013 √ √ √


AFRICAN DAWN ANNUAL REPORT 14
To see the actual publication please follow the link above