The Board, assisted by the Audit Committee, is responsible for risk management. The Afrox management team takes responsibility for the day-to-day design and implementation of risk management processes and systems. They are guided by the risk management policy, the enterprise-wide risk management framework and the risk management plan, which are reviewed regularly.
As part of their audit, information is provided to our external auditors to assess the effectiveness of the Company’s risk management processes. The internal audit function reviews risk management practices as part of the internal audit cycle.
Risk management and assessment process
With the completion of our restructure programme, the Company applies a refreshed approach to risk management.
Management of SHEQ risks
The responsibility for managing the effectiveness and efficiency of the SHEQ process rests with the Board. Our SHEQ department ensures that a policy is in place, and that the Company is proactive in its risk assessment and professional in its remediation. The most significant tool to measure our commitment to safe operations are the Company SHEQ Golden Rules.
To ensure relevance and proactive steps to the Company-wide policy and strategy, executive managers review the SHEQ policy regularly for improvements in monitoring techniques, investigation and controls. The policy states that Afrox will develop its SHEQ capabilities to world-class standards by manufacturing, marketing and supplying quality products that are safe and do not pose a risk to employees, customers or to the environment. The Company is committed to compliance with all external regulations, including ISO 9001, ISO 14001 and OHS 18001.
For more information on our SHEQ activities and strategy, refer to safety, health, environment and quality.
SHEQ performance is governed by self-regulation, communication and adhering to safe practices.
Our top-five risks
The table below outlines Afrox’s top-five risks. These are all incorporated into the material matters that follows on material matters definitions.
Year-on-year movement in our key risks
Risk number three from the 2015 integrated report, security of LPG supply, is no longer considered a key risk. Through various efforts, such as storage improvements at Bidvest Tanker Terminals and an increase in Afrox logistics capabilities, filling infrastructure and vehicle network growth, Afrox is in a secure position with the capacity to meet South Africa’s needs and sustain growth in Emerging Africa for the medium to long term. Refer to LPG for more details.
Healthcare, risk number four from the 2015 integrated report, also diminished owing to improved relationships with business and partners, yet remains on our operational risk register.
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