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4
Risk management
The board has delegated the
responsibility for risk management to the
audit and risk committee. This strengthens
the board’s ability to recognise all material
risks to which the group is exposed while
ensuring the requisite risk management
culture, policies and systems are
progressively implemented and function
effectively. Management is accountable to
the board for implementing and monitoring
the processes of risk management while
integrating them into day-to-day activities.
Divisionally, risk identification and risk
processes focus management on critical
issues at a business and industry level.
These issues are reported to the group audit
and risk committee for consideration at
board level.
Applicable King IV recommendations
are integrated into the risk management
function. These recommendations and
group requirements form part of an ongoing
enterprise-wide risk assessment process
in support of the group’s philosophy.
This ensures risks and opportunities
are adequately identified, evaluated and
managed at the appropriate level in each
business, and that their individual and joint
impact on the group is considered.
Our commitment to building and sustaining
an ethical organisational culture is
entrenched in our vision, mission, strategies
and operations. The board has ultimate
responsibility for the company’s ethical
performance, while executive management
is responsible for establishing a well-
designed and properly implemented ethics
management process.
King IV application register summary
Leadership, ethics and corporate citizenship
1.
2.
3.
Ethical leadership
Organisational culture
Responsible corporate citizenship
The directors hold one another accountable for decision-making based
on integrity, competence, responsibility, fairness and transparency through
their commitment to lead the company based on the King IV principles.
The chairman and lead independent director oversee this process on an
ongoing basis.
Performance and reporting
4.
5.
Strategy and performance
Reports and disclosure
This annual integrated report demonstrates how performance is achieved
through the strategic initiatives. Bidcorp sets and achieves its strategic
initiatives with reference to its risks and opportunities. The board assesses
the outcomes from its business model continuously and adapts it as
required.
Governing structures and delegation
6.
7.
8.
9.
10.
Role of the governing body
Composition of the governing body
Committees of the governing body
Delegation to management
Performance evaluations
The board serves as the focal point and custodian of governance.
Its role and responsibilities and execution of duties are set out in the
board charter. The board is satisfied with the current board composition
bringing the optimal mix of knowledge, skills, experience, diversity
and independence. The board delegates responsibility to board
subcommittees and divisional committees. The performance of the
board is to be annually appraised via the nominations committee.
Governance functional areas
11.
12.
13.
14.
15.
Risk and opportunity governance
Information governance
Compliance governance
Remuneration governance
Assurance
The board, recognises the importance of risk management as it is linked
to the strategy, performance and sustainability of the company. Delegated
by the board, the audit and risk committee delegates to management
the implementation of processes to ensure that the risks are identified
and managed within acceptable parameters. The board carries ultimate
responsibility for the remuneration policy, referring some matters for
shareholder approval, and delegating the remuneration policy rollout to the
remuneration committee.
Stakeholder relationships
16.
17.
Stakeholders
Responsibilities of shareholders
The board is responsible for the management of stakeholder relationships;
delegated to the management of each business to achieve effective
stakeholder relationships with material stakeholders and to balance their
legitimate and reasonable needs, interests and expectations. Management
proactively encourages shareholder engagements.
The detailed King IV application register can be found on the
company’s website.
51
Annual integrated report 2017
Bid Corporation Limited