Risk Management Policy & Internal Compliance and Control System
The Board of the Company is responsible for reviewing and ratifying the Company's systems of risk management and internal control. These systems and frameworks are designed to ensure that the Company's various operations run efficiently and the risks of failure to achieve the Company's business objectives are appropriately managed. It must be recognised however that the Company's internal control systems, whilst providing a reasonable level of assurance, cannot completely eliminate the risk of errors, irregularities or losses occurring.
The Board is assisted in monitoring risk by the Company's Audit and Risk Committee, whose Charter is available on this website. The Audit and Risk Committee has responsibility for monitoring the effectiveness and appropriateness of the accounting and internal control systems of the Company, as well as more general responsibility for reviewing the adequacy and effectiveness of the Company's risk management framework.
Risks are identified and assessed by the Company's executive management team and business unit managers, in consultation with functional staff, as well as by the Company's auditors. Controls (which may include policies, procedures, reviews, audits and/or obtaining appropriate insurance) are implemented to deal with risks based on an assessment of:
- The nature and extent of the risk facing the Company;
- The extent and categories of risk which the Board considers it is acceptable to bear;
- The likelihood of the risk materialising;
- The Company's ability to reduce the incident and impact on the business of the risk if it materialises; and
- The costs of operating particular controls relative to the benefit obtained in managing the relevant risk.
Details of relevant risks and risk control profiles are reviewed by the Audit and Risk Committee on a periodic basis. Management report to the Board and the Audit and Risk Committee any instances of control or policy failure or breach to enable them to consider whether relevant controls require reassessment, strengthening or improvement and whether the level of monitoring by the Audit and Risk Committee and the Board is adequate.
In accordance with the ASX Corporate Governance Council Best Practice Recommendations, the Managing Director and Chief Financial Officer are required to state to the Board in writing that:
- The Company's financial reports present a true and fair view, in all material respects, of the company's financial position and operational results and are in accordance with relevant accounting standards;
- The statement above is founded on a sound system of risk management and internal compliance and control which implements the policies adopted by the Board; and
- The company's risk management and internal compliance and control system is operating efficiently and effectively in all material respects.