Page 78 - Capricorn IAR 2020

GOVERNANCE REPORT RISK REPORT REMUNERATION REPORT
Risks to the strategy
The aggregated quarterly risk report to the Group BARC covers all subsidiaries. Apart from the detailed reporting on the various principal risks, the report highlights the following for board attention:
1. What are the risks to the strategy of the Group?
2. Where are we potentially taking too much or too little risk (in relation to RCAT)?
3. Whatareouremergingrisks?
2020 Group risk profile
The Group’s main risks are represented by the 14 principal risk categories that apply across the various operating units in all three jurisdictions (Namibia, Botswana and Zambia). The overall aggregated principal risk profile for 2020 is shown in the following table:
The GROs have updated and confirmed the table below for the risk profiles as at 30 June 2020.
Principal risk
Capital
Compliance
Credit
Finance and tax
Financial crime
Investment management
Legal
Liquidity
Market
Operations
People
Reputation
Strategic
Technology
Risk trend
Stable
Stable
Deteriorating
Stable
Stable
Stable
Stable
Stable
Stable
Improving
Stable
Stable
Stable
Improving
Residual risk
Green
Amber
Red
Green
Green
Green
Green
Amber
Amber
Amber
Amber
Amber
Amber
Amber
Previous
Green
Amber
Amber
Green
Green
Green
Green
Amber
Amber
Amber
Amber
Amber
Amber
Amber
The trend reflects the direction of the risk profile during the financial year, considering the effect of management actions and/or external factors on the residual risk profile.
Improving = Stable = Deteriorating = Red =
Amber = Green =
The risk profile improved during the period
The risk profile remained largely unchanged over the period
The risk increased during the period
The risk has exceeded the board risk capacity and appetite thresholds
The risk is within appetite and closely monitored due to its proximity to the board risk capacity and appetite thresholds. For some risks, this could indicate an optimised risk/ reward relationship
The risk is comfortably within appetite and, for certain principal risks, this could indicate capacity for more risk taking
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