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OUR
RISK MANAGEMENT
This report is presented by the Company’s Risk and Sustainability Committee (the Committee).
ROLE AND FUNCTION OF THE
COMMITTEE
The role and responsibilities of the Committee are governed by a
formal Charter which is reviewed annually and approved by the
Board. The following duties are assigned to it by the Board during
the year under review:
•
Ensure an appropriate and effective control environment and
clear parameters within which risk is managed.
•
Oversee issues relating to sustainability.
•
Oversee the conducting of a business risk assessment to identify
the most significant commercial, financial, compliance and
sustainability risks and implement processes to mitigate these
risks.
•
Assist the Board in setting the risk strategy and policies in
determining the Company’s tolerance for risk.
COMPOSITION AND MEETINGS
The Committee consists of three non-executive directors, all of
whom are independent. Four Committee meetings were held
during the year. The attendance of the Committee meetings was
as follows:
Committee member
Meeting attendance
RI Stewart (Chairman)
4/4
D Cleasby
1/2
M Haus
4/4
PM Makwana
2/2*
MI Sacks
4/4
Invitees
AG Hall
4/4
D Neethling
4/4
KB Wakeford
2/2*
*see changes to the Board on page 56
Representatives of both the internal and external auditors, as well
as the Group’s insurance and risk advisors attended all Committee
meetings.
PHILOSOPHY
As a pharmaceutical manufacturing, marketing, and distribution
company, Adcock Ingram is exposed to a range of risks. The Group’s
philosophy is not to entrench a compliance driven approach, but
rather to view risk management as a strategic enabler to ensure
proactive and appropriate action is taken to mitigate risk exposure.
The Group identifies and manages risk in line with best practices
which it views as core in terms of balancing risk and reward.
Adcock Ingram is committed to effective implementation of the
COSO Framework of Enterprise Risk Management. Risk and control
procedures are enhanced on an ongoing basis. The Company’s
Chief Executive Officer is responsible for the overall management
of risk while the Risk and Sustainability Committee is the oversight
committee on behalf of the Board.
Three members of the Audit Committee are alsomembers of the Risk
and Sustainability Committee. Risks are reported to the Committee
on a quarterly basis.
Directors consider strategic risks when formulating strategy,
approving budgets and monitoring progress against business plans.
Executive and divisional management are responsible for the day-
to-day management of operational risk and continuously enhancing
control procedures. Risk registers are compiled which are regularly
reviewed and updated. The key risks on these registers are classified
based on severity and probability of the risk materialising. Controls
are identified to mitigate the identified risks and prioritise action
plans. Registers are presented and discussed at various management
levels and forums.
OUR STRATEGY TO SUSTAIN VALUE
(continued)
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Integrated Report 2016