Cap. 10:31
PuBuc ENnTtES CoRPORATE GovERNANCE
(b)
No. 4/2018
using other methods to identify and assess risks such as financial and
envirmm1ental audits and hazard and operability studies.
200. The risk management committee should ensure that--(a)
risk fmmeworks or risk methodologies are implemented to increase the
probability of identifying unpredictable risks;
(b)
a systematic, documented, and formal risk assessment exercise is
conducted at least once a year;
(c)
it receives and reviews a register of the company's key risks;
(d)
management regularly considers and implements appropriate risk
responses which should be captured in the risk register;
(e)
management demonstmtes to the committee the risk responses which
provide for the identification and execution of opportunities to boost the
company's perform..'lnce;
(f)
processes are in place for the timely and complete disclosure to the
shareholders of infmmation on principal risk which is relevant, accurate
and accessible, together with the Board's views on the effectiveness of
the risk management processes;
(g)
it receives assurance from the chief risk officer and chief audit executive
regarding the eiTectiveness of the risk management processes, including
ensuring that the risk management plan is integrated with the daily
activities of the company;
(h)
it reviews anangcmcnts in term<; of'vvhich the company's employees may,
in confidence, raise concerns about possible improprieties in financial
reporting and other matters as more fully set out in this Code;
(i)
as part of the management team, a chief risk oftic(~r is appointed with
sufficient authority, stature, competence, resources and independence
and reports functionally to the risk committee and administratively to the
chief executive officer and \Vhose removal from office must be approved
by the Board and fully disclosed to the shareholders.
201. The risk management committee should, at least once a year, set the levels
and limits of the company's risk tolerance and risk appetite and more regularly revie\v
these levels or limits during periods of increased uncertainty or adverse changes in the
business environment.
202. In setting the risk tolemncc levels and limits, the risk management committee
should(a)
consider risk factors in the extemal and intemal business environment;
(b)
measure these levels or limits quantitatively and qualitatively;
(c)
use these levels or limits to set the parameters for the development of the
company's business strategy;
(d)
disclose in the integrated report whether the risk appetite exceeds or
deviates materially from the limits of the company's risk tolerance.
203. In evaluating and ranking risks, the risk management committee should be
guided by the nature and size of the risk and its impact and likelihood of occurrence.
204. The risk management committee should ensure that in addition to the control
measures introduced by "SPAMSOAP labels" (Segregation of duties, Physical controls,
Authorisation and approval, Management c:ontrols, Supervisory controls, Organisation
as a control, Arithmetical and accounting controls, Personnel control), and depending
on the demands of the company's business, additional minimum control measures such
as establishing a whistle-blowing function and an audit committee which opemtes
separately from the tisk committee are implemented.
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