Organisational
Overview

Risk management

RBPlat’s enterprise risk management (ERM) approach provides us with an integrated solution to the management of our business risks.

  Philosophy

The underlying premise of the RBPlat risk management philosophy is a thorough understanding of its risk exposures and opportunities in order to ensure that management and the Board are appropriately informed to take strategic decisions in the interests of all stakeholders.

The risk management processes and policies are embedded within the organisational culture and are consistent with our long term strategy.

RBPlat’s risk management vision:

  • Governance of risk is driven from the top, risk management, however, is driven from the bottom up
  • We have a comprehensive understanding of the risks we face as a business
  • We are confident in our selection of which risks to adopt and how to manage them
  • Our risk management strategy aims to meet all internal and external stakeholder requirements
  • We consistently apply risk management techniques to generate value
  • Effective risk management is an intrinsic part of our day-to-day activities. It enhances the quality of our strategic, capital allocation and day-to-day business decisions
  • Remuneration and incentives take into account the extent to which risk exposures are linked to performance and whether these risks exposures comply with the agreed risk appetite

  An integrated approach

The enterprise risk management ( ERM) approach we have adopted at RBPlat provides us with an integrated approach to the management of our business risks within a complex and ever-changing environment. In addition, the ERM framework allows for risk-based decision making and provides a streamlined process for evaluating opportunities within the business. Our ERM strategy, framework and policy are closely aligned with RBPlat’s business strategy and business plan. In addition to the ERM policy, our risk management policy suite includes a SHER policy, a sustainability policy, a fraud and corruption prevention policy and a Code of Ethics.

  The ERM Framework

The aim of the ERM framework is to:

  • Provide a structure within which management can operate to enforce a proactive ERM process
  • Inculcate a risk management structure throughout RBPlat and its mining operations
  • Further ensure that the risk management efforts of RBPlat are optimized

The ERM framework embeds the culture and practice of risk management in our day to day business activities by aligning strategy, processes, people, technology and knowledge with the purpose of evaluating and managing the uncertainties RBPlat faces in creating stakeholder value.

(ERM) framework

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  Active management of risks

The key driver of our risk process is active management of risks within the span of control for decision making at both an operational and strategic level. This allows for risk and governance control functions, including the safety, health, environment and risk ( SHER) function, to provide the adequate second level assurance.

We use the mine business review meetings to gain feedback from the heads of department on their risk profiles and to ensure that they are aligned with the mine’s operational and financial performance. The risk and assurance unit assists the departments to actively manage their risks by tracking their implementation of risk response plans, the findings of internal audit and other assurance providers and undertaking of risk assessments.

Our approach to risk appetite and risk tolerances

Risk governance at RBPlat using the three lines of defence model

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The RBPlat Board’s ultimate responsibility for risk management includes the development of RBPlat’s risk appetite and setting and monitoring of tolerance levels. Our approach to RBPlat’s risk appetite considers RBPlat’s business drivers (risk profile), shareholders’ expectations and regulatory expectations when developing risk appetite statement. Our risk appetite statement is designed to ensure that RBPlat Group includes risk factors in any major strategic or tactical decisions and to ask the question: “is this course of action compatible with our risk appetite?” The business plan, budgets (operational and capital) and the authority limits manual are used as a base to determine appetite and tolerance levels.

Our risk management review process and reporting structure

Risks are reported to various governance structures inclufing the:

  • Board (annually and Audit and Risk Committee quarterly feedback to the Board)
  • Board Audit and Risk Committee (quarterly)
  • Executive Committee (quarterly and ad hoc when required)
  • Business performance review meetings ( monthly)
  • All other stakeholders through our Integrated report.

Operational risks are reviewed by the relevant responsible person and are reported to various forums/committees as per our ERM framework. Functional risks and project risks are also reported to the specific governance structures responsible for its performance. The Executive: Group Risk, assurance and sustainability, supported by the Head: Risk and Compliance, is responsible on risks and the risk management process to various stakeholders.

Risk escalation processes are in place to ensure risks are reported and communicated with normal reporting cycles and on an ad hoc basis to address matters of particular urgency.

Strategic Risk

Strategic risk profile (risks related to the business strategy and material issues)

The ERM approach we adopted at RBPlat provides us with an integrated approach to the management of business risks within a complex and ever-changing environment. Please see our online integrated report for the strategic risk profile as well as the risk profiles of our three operations

ERM maturity

A detailed three-year risk management plan, which is reviewed annually, forms the basis of our risk management and assurance activities and focus. ERM is a dynamic concept and we will constantly revisit and update our framework to ensure that it is aligned to RBPlat’s business strategies taking into account developments in international risk standards and changes to legislation.

(ERM) framework

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Combined assurance

To ensure we have adequate assurance across the RBPlat Group, and to prevent gaps or duplication in assurance efforts, we have adopted a combined assurance approach. The Risk and Assurance unit is responsible for maintaining the continued assurance plan in consultation with functional and operational management and our outsourced internal audit service provider. The outcomes of all assurance activities are compiled in an audit tracking tool. Progress on the recommendations is tracked monthly and reported to the Audit and Risk Committee and/or the Social and Ethics Committee every quarter, depending on the nature of the area assured.

View integrated report 2015 for detail.