The Board is ultimately responsible for governance of risk management across the Group. The Board achieves this through the Audit & Risk, Finance & Investment, and the Executive Committees along with independent divisional or subsidiary Boards.
The responsibilities of each of the committees are provided on the Corporate Governance page. Our approach to risk management is structured on Enterprise Risk, Finance and Internal Controls Risk, Climate Risk as well as external risks to the economy, society and environment.
Management of Enterprise Risk is based on effective leadership provided by the Board through the Executive, Audit and Risk, Finance and Investment Committees as well as the Sustainability Working Panel. The Board reviews all material business and financial risks to provide sound decisions and targets for implementation. This ensures that all forms of risks are identified, evaluated and monitored, with systems and processes adapted accordingly to minimise and manage risks.
The Group uses the following instruments and approaches to risk management:
Accreditation to the following Standards play an important part in the Group’s Risk Management and monitoring processes.
The Audit & Risk Committee plays a critical role in assisting the Board with managing internal control risk within the Group as is fully explained on the Corporate Governance page.
We place high value on being legally compliant with national and international standards applicable to our operations. The Group adheres among other legislation to the following specific national legislation:
Adequate cybersecurity management requires a strategic approach that involves implementing appropriate security controls, and preventing, detecting, and responding to cyber incidents as they occur. Cybersecurity and data protection management is a continuous process that adapts to evolving potential threats and risks. Cyberattacks often result in substantial financial losses and potential consumer mistrust. The Group is currently aligning its data management systems to ensure that it fully complies with the Cyber and Data Protection Act [Chapter 12:07].
The Group takes a comprehensive approach to anticorruption management and recognises the impact that corruption poses to its financial stability, stakeholder trust, reputation, and ethical standing. The Group conducts periodic risk assessments across operations and subsidiaries to identify areas of exposure. Robust procedures are in place to prevent, detect, and report corruption, within all of the Group’s operations and subsidiaries, supported by regular employee training and awareness raising. The Group is committed to maintaining the highest standards of integrity and ethical conduct and have developed procedures for effective reporting and investigation of any cases of misconduct. Investigations are conducted in a fair, non-prejudicial manner irrespective of the suspect’s length of service, position and/or relationship to the Group. The Group’s anti-corruption culture encourages employees to timeously report all allegations or incidents of fraud, theft and corruption through secure channels, with all confirmed cases subject to disciplinary action or referral for criminal investigation to police authorities.
The Group subscribes to the whistle-blower system independently managed under the Axcentium Ethics Line Tip-Offs Anonymous service. This system utilises hotlines and email channels for employees and stakeholders to report breaches or any form of crime or unethical behaviour within the Group. Confidentiality is maintained throughout the process, providing reporters with the assurance of reporting fraudulent activities without fear of victimisation. The reported allegations are investigated to substantiate breaches to the Group’s codes of ethics and conduct, with subsequent disciplinary action taken accordingly.
The Group is guided by our Code of Conduct and policies on Business Standards, Sustainability, Environmental, and Supply and Procurement. Oversight is through the Audit Committee and Board.
Environmental responsibility is an important aspect of the Group’s operating practices. The Group gives emphasis to the importance of managing environmental risk by insisting on its businesses to be environmentally compliant and setting robust policies, goals and targets. The Group continues to identify, assess and manage significant impacts to the environment across its operations. The Group aim to avoid, minimise, mitigate, monitor and manage environmental risks from its activities by complying with regulatory requirements, adhering to responsible practices and undertaking regular environmental and occupational health and safety inspections.
As part of the Group’s overall commitment to addressing environmental risks, we recognise the importance of addressing the biodiversity and nature-related impacts resulting from our operations. During the reporting period, we continued to identify, assess and manage significant impacts to biodiversity across our sites.
The Group prioritise biodiversity by focussing on reducing threats to biodiversity, and implementing measures to halt and reverse biodiversity loss, as part of promoting sustainable practices in our business strategy and operations. Guidance on biodiversity-related risk management is included in the Group’s Environmental and Sustainability Policies.
Another aspect of environmental risk is the impact of climate change on the Group’s operations. The Group continues to recognise the need to review climate risk exposure and to develop appropriate strategies to ensure resilience throughout its operations and within its sphere of influence.
As climate change can result in a wide range of risks and impacts that disrupt operations and productivity, the Group’s businesses continue to focus on identifying and managing their climate-related risks and opportunities and report accordingly. The Group continues to implement a variety of strategies to manage the challenges posed by climate change and to adapt to the changing conditions, ensuring long-term sustainability and productivity. The Group is also committed to implementing appropriate climate-related innovations and opportunities thereby enhancing sustainable development practices.
The Group’s climate-risk assessment and management approach is guided by the United Nations Framework Convention on Climate Change (UNFCCC) along with national frameworks such as the National Climate Policy, Climate Response Strategy, and the upcoming Climate Change Management Bill. The Group is also working towards aligning with IFRS S2: Climate-related Disclosures and the relevant GRI standards. Internally, climate change management is included in the Group’s Environmental and Sustainability Policies.
The Group is guided by our Code of Conduct and policies on Business Standards, Ethics, and Supply and Procurement. Oversight is through the Audit & Risk, Finance & Investment, and the Executive Committees along with independent divisional or subsidiary Boards.
