70 / 276
GOVERNANCE AND RISK
68
Tiger Brands Limited Integrated Annual Report
2014
Risk management
Effective risk management is fundamental to the
business activities of the group. Tiger Brands
has a comprehensive risk management
programme, which has been implemented
across all of its operations. By identifying and
proactively addressing risks and opportunities,
the group is able to sustain value for its
stakeholders while protecting its business
operations, the wellbeing of its employees
and its reputation.
A formal risk policy is in place, which outlines
Tiger Brands’ risk management objectives and
the process for identifying, evaluating and
managing risks on an ongoing basis.
Risk control framework
The risk management process involves
identifying and documenting key risks, which
are assessed in terms of likelihood and impact.
The controls and business processes in place to
manage the risks are evaluated and action
plans are developed to address any residual
risk exposure, where necessary.
Responsibility and accountability for risk
management permeates all levels of the
organisation and Tiger Brands has established
a culture of risk management which is
embedded through processes, resources and
structures. These range from internal audit, risk
control and environmental audits, systems,
insurance, IT security, compliance processes,
quality management and a range of other line
management interventions. Risk management is
further strengthened by enforcing the group’s
Code of Conduct and encouraging employees
to use the confidential ethics hotline to report
concerns.
The board obtains assurance that the controls
over identified risks are operating effectively
through a multi-tiered combined assurance
framework, comprising:
1. The board, risk and sustainability committee,
executive directors and management;
2. The company’s Commercial Audit Unit,
internal auditors KPMG Services (Pty) Limited
and other assurance providers;
3. External auditors Ernst & Young Inc., and
other assurance providers such as Marsh
(Pty) Limited Risk Consulting; and
4. Environmental risk assurance by Marsh (Pty)
Limited Africa.
1. The board, executive directors and
management
The board
Ϣ
Ϣ
Retains ultimate responsibility for the
oversight of the group’s risk management
processes
Ϣ
Ϣ
Sets the level of risk tolerance and limits
of risk appetite for the group
Ϣ
Ϣ
Instils a prudent approach to risk
Ϣ
Ϣ
Ensures that the group’s strategic
objectives, management of reputational
risk, management priorities and
stakeholder expectations inform
decisions
Ϣ
Ϣ
Monitors the effectiveness of the risk
management process