Group Strategic Approach
The Board is ultimately responsible for governance of risk management across the Group. The Board achieves this through the Audit & Risk and the Finance & Investment Committees as well as 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 as well as Environmental Risk.
Enterprise Risk Management
Management of Enterprise Risk is based on effective leadership provided by the Board through Executive, Audit and Risk, and the Finance and Investment Committees. The Board reviews all material business and financial risks to provide sound decisions and targets for implementation. The Group uses the following instruments and approaches to risk management:
- Maintaining being certified for the International Management System Standards (MSS) of ISO 9001 (Quality Management), ISO 17025 (General requirements for the competence of testing and calibration laboratories) and FSSC 22000 (Food Safety System Certification)/ ISO 22000 (Food Safety Management) in some business units;
- Supplier and/or customer compliance audits;
- Safety, Health, Environment, and Quality (SHEQ) policies;
- Providing effective leadership to ensure all forms of risks are identified, evaluated and monitored, and systems and processes are adapted accordingly to minimise any risks.
The Group continues to work with its companies to attain other Certifications and Standards where appropriate.
Financial and Internal Control Risk
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.
Environmental responsibility is an important aspect of social responsibility. The Group gives high emphasis to the importance of environmental risk by being environmentally compliant. Based on a risk-based and sustainability perspective, the Group aims to avoid, reduce and mitigate environmental risks and impacts from its activities by undertaking regular environmental and occupational health & safety inspections. The results from the inspections are included in a positive feedback management cycle.
In order to be environmentally compliant, the Group adheres, among others, to the following Zimbabwean legislation:
- Accident Prevention (Workers Compensation Scheme) Notice – Statutory Instrument 68 (of 1990) Factories and Workers Act (Chapter 14:08)
- Environment Management Act – Chapter 20:27
- Environmental Management (Effluent & Solid Waste Disposal) Regulations, Statutory Instrument No. 6
- Environmental Management (Control of Hazardous Substances) (General) Regulations, 2018. Statutory Instrument 268 of 2018.
- Environmental Management (Environmental Impact Assessment & Ecosystems Regulations) Statutory Instrument No. 7 of 2007
- Labour Act (Chapter 20:01)
- NSSA Act of 1989, Chapter 17: 04 (Social Security Schemes for the provision of benefits to all employees)
Another aspect of environmental risk is the impact of climate change on the businesses. Examples are drought leading to decreased cropping, decreased ground water supplies to industries, increased temperatures and extreme events such as flooding. From a global perspective, any impact of climate change further afield can create uncertainty by affecting the Group’s supply chain. Resilience to disruptions in our supply chain is therefore being given priority going forwards to mitigate any potential socio-economic impacts.