The board is ultimately responsible for ensuring that the group’s system of internal control is effective to guard against any loss of the group’s assets. The risk assessment and management function therefore covers any routine transactional risks which a mining group of the size and nature of Northam is exposed to in the normal course of business.
At Northam risk assessment is an executive management function. The process is overseen by the audit and risk committee on behalf of the board. The risk review process is ongoing and comprises a continuous identification of the major risks facing the company. These are ranked on the basis of their inherent risk. Mitigating steps are identified so as to ensure that the residual risk is at an acceptable and tolerable level. The risk register includes the listing of applicable legislation and the extent of compliance.