Materiality assessment
Our Risk Management Committee drives an ongoing risk assessment process to identify and rank our key risks and opportunities according to their probability and potential to materially impact our operations.
This process informs the prioritisation of various material issues affecting all operations within the group, ensuring a dynamic and responsive business strategy.
We acknowledge the importance of a robust, continuous materiality assessment process to ensure that matters impacting upon the organisation’s ability to create value over the short, medium and long term are identified. Through materiality analysis we identify, quantify, prioritise and respond to important stakeholder issues, both positive and negative. A wide range of factors, both external and internal and encompassing regulatory, economic, social, political and global influences on the group, together with legitimate stakeholder expectations, impact our daily business operations. These are deliberated upon at both the operational and board levels across the group, feeding into our strategic framework and the identification of risk impacts on the organisation.
Business risks
The following risks were identified in the year under review as being the top strategic, financial and operational risks considered as potentially having the most material impact upon the group, if realised (fully explained in the Risk Management report):
CURRENT RESIDUAL RANK | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
RISK CATEGORY | Strategic | Political | Market | Environment | Legal and regulatory |
Stakeholders | Strategic | Infrastructure | Financial and treasury |
Financial and treasury |
PRIORITY RISK | Sugar imports | Country/ investment |
Price market risk |
Weather | Direct and indirect tax exposure |
Advocacy and stakeholder relations |
Cane supply |
Bulk water supply |
Access to restructuring of funds |
Currency exposure |