Corporate Responsibility » Corporate Governance » Risk Management and Internal Control

The Board accepts final responsibility for the risk management and internal control systems of the Group. It is the task of management to ensure adequate internal financial and operational control systems are developed and maintained on an ongoing basis to provide reasonable assurance regarding:

• the effectiveness and efficiency of operations
• the safeguarding of the Group’s assets (including information)
• compliance with the applicable laws, regulations and supervisory requirements
• the reliability of the accounting records 
• business sustainability under normal as well as adverse conditions, and 
• responsible behaviour towards all stakeholders.

The efficiency of any internal control system is dependent on compliance with prescribed measures. There is always a risk of noncompliance of such measures by staff. Consequently, even a strict and efficient internal control system can provide no more than a reasonable measure of assurance in respect of the abovementioned objectives. Internal auditors monitor the operation of the internal control and risk management systems and report to management and the Audit and Risk Committee on findings and submit recommendations. In addition, there is a self-assessment process supplementing the existing structures of evaluating the systems of internal control. This process includes the signing of a representation letter by the head of each department and operating division regarding adherence to internal controls. A formal Risk Forum has been established where high-risk issues are being addressed.

All critical information technology (IT) systems and data are backed up. The disaster recovery plan has been documented and an automated off-site disaster recovery facility, focusing on the critical IT systems, has been established and is operational. The Board assessed the internal control systems throughout the financial year ended 30 June 2009 and is of the opinion that they met acceptable criteria.

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