INVESTOR RELATIONS CORPORATE GOVERNANCE
Risk Management Policy
It is the policy of the Videlli Group that all operations are conducted in a manner which ensures, as far as reasonably practicable:
- The health and safety of all employees, consumers, customers, visitors to our sites and others who may be affected by the Group's operations;
- Compliance with all applicable legislation;
- Protection of assets and earning capacity against loss, and where possible enhancement of profitability and growth of assets;
- Entering contracts when the Company has the technical and financial capability to deliver on time and on budget;
- Protection of the environment.
These policy objectives will be achieved by implementation, throughout all parts of the Group, of an effective risk management program including the following:
- Training of all managers in the areas of risk management;
- Maintenance of business systems in order to provide the Group and the individual business units with the best available data for making and monitoring risk management decisions;
- Maintenance of records in accordance with legislative requirements;
- Monitoring and reporting to the Board on significant circumstances and risk management issues which may affect the Group;
- Implementation of loss prevention and control measures directed at reducing the potential for loss or damage to the lowest level possible in the prevailing circumstances;
- Maintenance of the highest practicable property/business interruption protection standards by each of the business units;
- Management of insurance program to acquire appropriate coverage while optimising premiums;
- Adoption of higher levels of self insurance where appropriate to achieve long term stability for the Group;
- Implementation of strategies to limit liability arising from the Group's activities by:
- Minimising the incidence and adverse impact on third parties and employees of any Group activities;
- Ensuring the contractual arrangements of business units mean they do not assume unnecessary liabilities or unnecessarily give up rights;
- Ensuring contractual arrangements transfer risks and liabilities, where appropriate;
- Maintaining direct, professional, long term relationships with insurers/re-insurers and advisors;
- Applying Group standards, where appropriate, to suppliers and third parties.
Responsibility for establishing and maintaining effective risk management strategies and world-wide standards rests with the management within each business unit, accountable to the Audit and Risk Committee.
Group risk management programs will adopt best industry practices and apply these standards, as far as is reasonably practicable, consistently through all operations world wide.