RISK MANAGEMENT The Board is responsible for evaluating and determining The management of risks is subject to audit by IA, the nature and extent of the risks it is willing to take in with support from specialist external consultants achieving the Company’s strategic objectives and for where necessary. ensuring that the Company establishes and maintains Further discussion of risk management is set out in the appropriate and effective risk management and internal sections of the Corporate Governance Report headed control systems. “Accountability and Audit – Risk Management and The Board and management are responsible for identifying Internal Control”, “Audit Committee – Assessing the and analysing the risks underlying the achievement of Effectiveness of Risk Management and Internal Control business objectives, and for determining how such risks Systems” and “Internal Audit Department – Scope of should be managed and mitigated. The Board oversees Work” on pages 102 to 103, page 104 and page 105 management in the design, implementation and respectively. monitoring of the risk management and internal control The following diagram illustrates the key risk systems, and management provides confirmations to the management processes of the Company. Board on the effectiveness of these systems. Risks that impact the achievement of business objectives are identified by management and categorised with reference to a risk taxonomy. Risk Identification Adequacy and effectiveness of Risk Risk Impact of the identified risks risk management and internal and vulnerability of the entity to controls are closely monitored Monitoring Analysis the risks are evaluated to by management through determine the risk level. regular review exercise. Risk Risk Reporting Mitigation Risks are regularly reviewed Internal control procedures and and reported to the Audit response protocols are designed, Committee and other relevant documented and implemented to governing parties. manage the risks and mitigate their impact. 108