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

Our ERM strategy framework and policy are closely aligned with RBPlat’s business strategy and business plan which form the basis for RBPlat’s risk appetite statement and related risk tolerances.

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
  • furthermore ensure that the risk management efforts of RBPlat are optimized
  • facilitate enhanced performance

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

(ERM) framework

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The way forward:

Linking strategy and risk has never been more important than it will be going forward, so it is essential that we ensure proper alignment with our strategic pillars and our risks. We also have to ensure in running our business that there is full alignment between strategy, risk, performance and reward. We recognise that if there is any misalignment between these elements we will not be able to protect and build stakeholder value. Going forward we will be reviewing our existing risk universe and key risk indicators to ensure they remain relevant in this new business context.

  Our approach to risk appetite and risk tolerance

In line with the recommendation of King IV RBPlat’s Board has ultimate responsibility for risk management including the development of our risk appetite and the setting and monitoring of risk tolerances annually and in alignment with the business plan. Our risk appetite statement is designed to ensure that the RBPlat Group includes risk factors in any major, strategic or tactical decision having considered our approved risk threshold levels and the compatibility of a course of action with our risk appetite is always questioned.

RBPlat’s risk appetite statements

All companies must assume a certain degree of risk, but there are limits as to how much risk RBPlat can accept in its pursuit of creating economic value for all its stakeholders.

Our risk appetite statement is designed to ensure that the Group considers risk factors in any major, strategic or tactical decision having considered our approved risk threshold levels.

The risk appetite statement is aligned to the Company’s 4-pillar strategy and the six capitals, and it uses the Company’s risk registers as the key reference point. RBPlat has low tolerance for an aggregate level of risk that jeopardises the Company’s four-pillar strategy.

The Company’s strategy is to sustain asset quality, so the Board of Directors set a low appetite for the pursuit lower-grade assets and thus has no appetite to acquire lower-grade businesses or assets merely for the sake of market consolidation.

The risk appetite statement and associated dashboards introduce a process of risk measurement and trend analysis in the context of the company’s KPIs. This provides management with a sharper focus on risk impact and enable better communication, consensus and decision-making in response to risk.

This articulation of our risk appetite and our ability to tolerate risk guides the business in long-term decision-making and our day-to-day responses to ensure that RBPlat is sufficiently flexible and able to respond to emerging risks. The risk appetite and tolerance dashboard aims to be a strategic tool to link strategy, risk, performance and reward.

Please refer to the current and previous Integrated Reports for performance against approved risk appetites and risk tolerances.

Our risk management review process and reporting structure

  • 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: Corporate Risk and Compliance, is responsible for risk management reporting 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 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.

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 areas. 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. RBPlat made a strategic decision to develop its risk management process to a level of ‘optimised’ to ensure that it reaches a balance between the amount of resources invested in managing its risks and the benefit it obtains from managing its risks, without impeding the flexibility of our business.

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Combined assurance

Risks today are so diverse that the internal audit function cannot provide assurance on its own, which requires a need to combine and coordinate the reporting from various assurance providers. RBPlat has introduced the process of combined assurance approach, to prevent the gaps or duplication in assurance effort and in providing a holistic approach to risk management and assurance. The Risk and Assurance unit is responsible for maintaining the continued assurance plan which is in line with the combined assurance framework, 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 findings tracking tool. Progress on the recommendations is tracked monthly and reported to the Audit and Risk Committee and/or the Social and Ethics Committee on a quarterly basis, depending on the nature of the area assured.

View integrated report 2016

  Combined assurance

Risks today are so diverse that the internal audit function cannot provide assurance on its own, which requires a need to combine and coordinate the reporting from various assurance providers. RBPlat has introduced the process of combined assurance approach, to prevent the gaps or duplication in assurance effort and in providing a holistic approach to risk management and assurance. The Risk and Assurance unit is responsible for maintaining the continued assurance plan which is in line with the combined assurance framework, 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 findings tracking tool. Progress on the recommendations is tracked monthly and reported to the Audit and Risk Committee and/or the Social and Ethics Committee on a quarterly basis, depending on the nature of the area assured.

View integrated report 2016