Background
Risk management is a high priority for the company and the Board of Directors has required management to design and implement a risk management and internal control system to manage the company’s material business risks.
Whilst the full Board is ultimately responsible for identifying and managing areas of significant business risk, and ensuring that arrangements are in place to adequately manage these risks, the company’s Audit Committee takes a lead role in this process.
Company Policy
The Audit Committee continues to evaluate the company’s risks and is developing specific cost-effective strategies and action plans for minimising and treating the risks.
Management, working with the Audit Committee, has identified Adelaide Resources’ risk areas, and specific risks within each area, and is developing a corporate risk register which lists and rates these risks.
The areas of risk that have been identified are:
• Statutory/regulatory
• Financial
• IT management
• Tenement management
• Community
• Asset management
• Corporate and strategic
• Environmental
• Personnel and safety
The control measures, and improvement actions for minimising and treating each risk, are noted in detail in the company’s corporate risk register to be followed by employees and contractors.
The Board requires management to report to it on whether the company’s material business risks are being managed effectively, and management has reported to the Board as to the effectiveness of the company’s management of those risks.
The Board also receives assurances from the managing director and the chief financial officer that the declaration provided in accordance with section 295A of the Corporations Act is founded on a sound system of risk management and internal control and that the system is operating effectively in all material respects in relation to financial reporting risks.
Management is continuing to review the company’s risk management and internal control system with the ongoing development of the corporate risk register, for review by the Audit Committee prior to implementation by the Board.
