RBPlat's Enterprise Risk Management (ERM) approach provides an integrated solution to the management of our business risks.
The Board of RBPlat assumes responsibility for the governance of risk, sets the direction for how we approach and address risk, and mandates the Audit and Risk Committee to exercise ongoing oversight of risk management.
RBPlat's Enterprise Risk Management (ERM) approach provides an integrated solution to the management of our business risks. Our ERM framework aligns our strategy, processes, people, technology and knowledge with the purpose of evaluating and managing the uncertainties we face in protecting and creating shareholder value.
Our risk governance structures and processes, which include the oversight, management and assurance of risk management, are based on the three lines of defence and a combine assurance model. This enables an effective internal control environment and supports the integrity of information used for internal decision-making, strategy development and planning by management, the Board and its committees.
It is our aim to maintain an optimised level of risk management in RBPlat, which will allow us to take our management of risk to the next level.
Linking strategy, risk, performance and reward
By linking our board-defined strategy to our risks, performance and rewards RBPlat has been able to:
- Measure what matters
- Mitigate risks meaningfully
- Monitor business performance at all levels
- Incentivise the right behaviours to achieve the business goals
- Incentivise the right behaviours to avoid risks in the first place.
This has become a business embedded, living process. It facilitates alignment at a strategic and operational level and provides meaningful reporting month-to-month and day-to-day on the position of our business.
Linking strategy to risk has never been more important to ensure that our business is able to drive value to our stakeholders sustainably and continually.
Our approach to risk appetite and risk tolerances
In line with the recommendations 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. Our risk appetite statements are designed to ensure that the RBPlat Group includes risk factors in any major strategic or tactical decision and the compatibility or a course of action with our risk appetite, is always questioned.
RBPlat's risk appetite statements
While it is necessary for business to assume a certain amount of risk there are limits as to how much risk RBPlat can accept in its pursuit of value creation for all its stakeholders. Assuming too much risk could cause the fabric of the organisation to unravel if several of these risks materialise. In extreme cases it could cause it to collapse. Failure to contain risk exposures within acceptable limits could also cause harm to people and jeopardise the interests of stakeholders. It is vital therefore that the Company manages risk within defined limits.
RBPlat has a low tolerance for an aggregate level of risk that jeopardises the Company's four-pillar strategy. Because the Company's strategy is to sustain asset quality, the Board of Directors has set a low appetite for the pursuit of lower-grade assets and it therefore has no appetite to acquire lower-grade businesses or assets merely for the sake of market consolidation.