The Board is responsible for the governance of risk and ensures that Management maintains a sound system of risk management and internal controls, to safeguard the interests of the company and its shareholders17.
The Board is responsible for the governance of risk. It sets the tone and direction for the way risks are managed in the company.
The Board also oversees management’s design, implementation and monitoring of the company’s risk management and internal controls systems, which should be within the parameters of risk tolerance and policies set by the Board.
The Provisions describe:
- The Board’s role in risk management and the formation of a Board Risk Committee (BRC) (Provision 9.1).
- The assurances the Board receives from the CEO and other Key Management Personnel (KMP) on financial matters, as well as risk management and internal control systems. (Provision 9.2).
The Board determines the nature and extent of the significant risks which the company is willing to take in achieving its strategic objectives and value creation. The Board sets up a Board Risk Committee to specifically address this if appropriate.
The Board requires and discloses in the company’s annual report that it has received assurance from:
- the CEO and the Chief Financial Officer (“CFO”) that the financial records have been properly maintained and the financial statements give a true and fair view of the company's operations and finances; and