The Board is responsible for determining the nature and extent of the significant risks that the Group will accept in order to achieve its strategic objectives, and for maintaining sound risk management and internal control systems. During the year an externally-facilitated review of the Group’s risk appetite was started and will be completed in 2018.
The Board receives detailed analysis of key matters for consideration in advance of Board meetings. This includes reports on the Group’s operating performance, including safety and health, financial, environmental, legal and social matters, key developments in the Group’s exploration, project and business development activities, information on the commodity markets, updates on talent management and analysis of financial investments. The provision of this information allows the early identification of potential issues and assessment of any necessary mitigating actions.
The Audit and Risk Committee assists the Board by reviewing the effectiveness of the risk management process and monitoring key risks and mitigation procedures. The Chairman of the Committee reports to the Board following each Committee meeting and, if necessary, the Board can discuss the matters raised in more detail. These processes allow the Board to monitor effectively the Group’s major risks and mitigation procedures, and to assess the acceptable level of risk arising from the Group’s operations and development activities. Risk management reports are sent to the Board quarterly.
The Code of Ethics sets out the Group’s commitment to undertaking business in a responsible and transparent manner. The Code requires honesty, integrity and accountability from all employees and contractors and includes guidelines for identifying and managing potential conflicts of interest. An Ethics Committee comprising members of senior management implements, develops and updates the Code and monitors compliance. The Code and other compliance matters form part of the induction programme for all new employees.