The Spur Corporation board recognises the importance of an effective risk management process and acknowledges that it is accountable and responsible for ensuring that adequate procedures and processes are in place to identify, assess, manage and monitor key business risks.
Risks are identified, assessed and managed as part of the day-to-day operations of the group at various levels of management, who are empowered in terms of formal policies and protocols to deal with them in an efficient manner. Risk management is integrated into all facets and functions of the company.
The board has approved a formally documented risk management policy as recommended by King III, outlining:
- The responsibilities of employees, management, the risk committee and the board.
- The definition of risk and risk management.
- Risk management objectives.
- The board’s risk approach and philosophy.
- The risk management process and structures.
The risk committee performs an oversight role in respect of risk management. The committee is assisted by the operational executive committee (“exco”) which deliberates on risks relevant to the group and appropriate response strategies. Each member of the exco is responsible for identifying, evaluating and managing risk on a daily basis in their respective functional areas and reporting the results of this process to their peers at a semi-annual exco meeting. The exco is responsible for identifying, evaluating and prioritising strategic and operational risks and implementing appropriate controls or such other responses necessary to mitigate the risks, to the extent reasonably possible.
Risk owners are responsible for implementing necessary response strategies to risks. The risk committee, comprising of risk owners, reviews and assesses the appropriateness of the risks identified and formulates related response strategies. It also measures progress made in terms of implementing the response strategies and the overall risk management process. Once approved, it is delivered to the Spur board.