Risk management

Risks

The material risks identified by the group in terms of their probability, and the potential impact on Hyprop, are shown below. Each risk has been mapped to the strategic objective on which it could have an impact, affected stakeholders, management’s strategic response and related key performance indicators.

Approach

Hyprop’s systems of internal control are designed to provide reasonable assurance on the integrity and reliability of the financial statements. By managing, rather than eliminating, applicable risks these systems are intended to safeguard, verify and maintain accountability of the company’s assets. Equally, they are designed to identify and minimise significant fraud, potential liability, loss and material misstatement while complying with applicable laws and regulations.

Framework/process

The board reviews and monitors the efficacy of systems of internal control, assisted by the audit and risk committees. These committees are assisted by management reporting and periodic reviews, as well as by an outsourced internal audit service provider. The committees report to the board on the findings of the internal audit function.

Executive management implements controls to ensure the validity, accuracy and completeness of financial information. These controls are reviewed by internal and external audit. External audit reports on the fair presentation of financial information at statutory reporting level. On an operational level, this is done by the executive committee.

Key risks and uncertainties that may affect achieving our strategic objectives are set out on page 25.

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