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Tiger Brands Limited Integrated Annual Report
2014
Governance and risk
Foreign currency risk
Exposures to foreign currency fluctuations arise
as Tiger Brands operates in various countries
and undertakes transactions denominated in
foreign currencies. The group enters into
various types of foreign exchange contracts as
part of the management of its exposures in this
regard. These exposures are monitored on an
ongoing basis and transactions involving
foreign currency are governed through a clear
foreign exchange policy where open positions
are limited.
Labour unrest
South Africa’s labour environment has become
increasingly challenging, with widespread
labour action taking place in certain sectors
of the economy during the last year. Industrial
action could result in the disruption of
production and distribution of products and
consequent failure to meet customer service
delivery expectations. Tiger Brands prioritises
strong relationships with its labour force and
unions and promotes open communication with
union representatives.
Other risks which require significant management
attention
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Reputation and increased consumer activism
through social media
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Merger and acquisition risks
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Electricity and water supply
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Catastrophic loss of manufacturing facility
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Political/country risk