Page 18 - SABN AR 2021

Risk management
The Board is responsible for risk management and has delegated some of its responsibilities, functions and powers to the Audit and Risk Committee (ARC). As part of its responsibility, the Board has adopted the SARB Group Risk Management Policy which guides the SABN in terms of risk philosophy, governance framework, categories, risk appetite and tolerance. The ARC, in turn, monitors the risk management process as guided by the SARB Group Risk Management Policy and Framework. The SABN, as a wholly owned subsidiary of the SARB, is subject to the SARB Group Risk Management Policy and philosophy. Owing to the unique product (banknotes) that the SABN manufactures and the nature of its functions, the SABN’s risk management and control objectives go beyond the risks that impact its operations to include public interest in line with its constitutional and statutory responsibilities. Risk management and control form an integral part of good corporate governance within the SABN.
The SABN has an internal Risk Management Committee (RMC) with its own terms of reference. The committee is chaired by the SABN’s Head of Governance, Risk and Compliance and comprises heads of department and representatives from the SARB’s Internal Audit Department (IAD) and the Risk Management and Compliance Department (RMCD). The internal RMC’s main objectives are to monitor the implementation of the risk management strategy, policy and structure, and to assess and review the adequacy and effectiveness of the risk management processes within the SABN.
The SARB Group’s risk management framework ensures that the risks that may threaten the achievement of its strategic and operational objectives are identified and then managed adequately and effectively at acceptable levels within the SARB’s risk tolerance requirements. The approach to risk
management includes monitoring and appropriately responding to potential and actual risks emanating from global and domestic political, economic and regulatory environments, as well as risks relating to strategic initiatives and projects. The risk management framework governs the full spectrum of risk, including strategic, financial (including credit, market and liquidity risk), reputational, operational (including business continuity, cyber and information security, and compliance risk), policy process and project risk. The framework also considers, and where appropriate, incorporates the recommended risk management principles as set out in the King Report on Corporate Governance in South Africa, 2016TM (King IVTM).
2020/21 performance highlights
The SABN obtained the following ISO re-certifications:
• ISO 9001: Quality Management System;
• ISO 14001: Environmental Management System;
and
• ISO 22301: Business Continuity Management
System.
The SABN has successfully transitioned from the OHSAS 18001 to the ISO 45001 standard for occupational health and safety certification.
The certifications validated that the SABN is compliant with the requirements of an integrated management system for setting up and managing an effective quality, environment, business continuity and occupational health and safety management system.
SARB Group risk management framework
The risk management framework of the SARB Group is depicted in the figure on the next page.
South African Bank Note Company (RF) Proprietary Limited
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Annual Report 2021
Corporate governance statement