The Board is responsible for the oversight of the Company’s risk management and control framework.
Responsibility for control and risk management is delegated to the appropriate level of management within the Company with the Executive Director having ultimate responsibility to the Board for the risk management and control framework.
The primary objectives of the risk management system at the Company are to ensure:
In line with these objectives the risk management system covers:
Arrangements put in place by the Board to monitor risk management include:
A risk management model is also being developed and will provide a framework for systematically understanding and identifying the types of business risks threatening the Company as a whole, or specific business activities within the Company.
Given the speculative nature of the Company’s business it is subject to general risks and certain specific risks. Some of these risks include but are not limited to the following:
The analysis and evaluation criteria are used to continually assess the impact of risks upon the Company’s business objectives. Management is responsible for the development of risk mitigation plans and the implementation of risk reduction strategies. The annual business planning process includes careful consideration of internal and external risk profile of the company.
The Executive Director and Chief Financial Officer (or equivalent) will report monthly to the board on the areas they are responsible for, including material business risks and provide an annual written report to the Board summarising the effectiveness of the companies’ management of material business risks.
The Company’s business risk management process provides a comprehensive, integrated approach for carrying out risk management activities. This process will allow management to minimise the potential impact of business risks in achieving objectives to create and protect shareholder value.
The Company’s Chief Executive Officer and Chief Financial Officer (or equivalent) are required to report in writing to the Board (as required by section 295A of the Corporations Act) that:
Note: Under the provisions of the Corporations Act a person performs a chief executive function in relation to the Company if the person is the person who is primarily and directly responsible to the directors for the general and overall management of the Company.
In addition, in the event that there is not a Chief Financial Officer in place, the Corporations Act provides that a person performs a chief financial officer function in relation to the Company if that person is the person who is primarily responsible for financial matters in relation to the Company and directly responsible for those matters to either the directors or the person or persons who perform the chief executive function in relation to the Company.
The persons fulfilling these respective roles will be identified by the Board with the appropriate declarations made as required.