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GOVERNANCE AND RISK
72
Tiger Brands Limited Integrated Annual Report
2014
Risk management
continued
IT systems
The group continually assesses the IT risks that
could have a material impact on its operations
and has comprehensive disaster recovery plans
in place to mitigate these risks. The group
is currently in the process of completing the
consolidation of its various ERP systems onto
a single Oracle platform and has centralised
certain functions, including procurement and
finance. Change risk is being managed
through detailed planning to ensure a smooth
and effective transition and integrity of the
group’s information management systems.
Legislative issues
Tiger Brands is fully compliant with the
regulatory framework within which it operates.
Areas relevant to the group, where interaction
at appropriate governmental level is required,
include fair trade, product safety and tariff
enforcement. To ensure that employees have
adequate skills to interpret legislative
requirements and remain abreast of new
legislation, regular compliance training is
conducted. This applies to all territories in
which the group operates.
Product safety
The quality and safety of the group’s products
is of paramount importance for its brands and
reputation. Embedded quality control and
assurance processes, as well as health and
safety procedures, are in place across all
of the group’s manufacturing facilities, with
restricted access controls at production
facilities. Following the recent product recall
of a batch of “Simply Delicious” products that
were distributed into the market, the group has
taken steps to further reinforce these controls.
Effective crisis management plans are in place
and are regularly tested. The majority of the
group’s manufacturing facilities are HACCP
compliant or in the process of seeking HACCP
or ISO 22000 accreditation.
Resources and procurement
Tiger Brands is exposed to soft commodity
price risk when acquiring strategic raw
materials such as wheat, maize, rice, oats,
sorghum, tomatoes, white beans and sunflower
oil. Price variations are triggered by supply
conditions, weather, economic conditions and
other factors. The group monitors and reviews
the impact of climatic conditions on agricultural
produce and the implications for its supply
chain. It also reviews procurement exposures
on an ongoing basis.