Entire Annual Report - Anglo American Platinum

Statement of Corporate GovernanceGeneral principlesThe Board affirms its commitment to the principles ofopenness, integrity and accountability and to theprovision of timeous, relevant and meaningful reportingto all stakeholders. It ensures that the Group’s businessis conducted in accordance with high standards of corporategovernance and with local and internationally acceptedcorporate practice. These standards are entrenched in theGroup’s established system of internal control by itsprocedures and its policies governing corporate conduct,with particular emphasis on the importance of thequalitative aspects of corporate governance.The Directors endorse the Code of Corporate Practicesand Conduct as issued by the King Committee onCorporate Governance and consider that the Group compliesin all material respects with the provisions thereof.All the key principles underlying the King recommendationsas contained in the Code are reflected in theGroup’s corporate governance structures, which arereviewed from time to time to take into accountorganisational changes and international developmentsin the field of corporate governance. It is the policy of theBoard and management to actively review and enhancethe Group’s systems of control and governance on acontinuous basis to ensure that the Group’s business ismanaged ethically and within prudently determined riskparameters in conformity with internationally acceptedstandards of best practice.Risk managementIn pursuance of its policy of aligning Group corporategovernance with international best practice and therebysafeguarding the interests of stakeholders, the ExecutiveCommittee has been mandated by the Board tosupplement the Group-wide system of internal control tomonitor, manage and control significant Group risks. Theseobjectives are enhanced through compliance with, andobservance of, the UK Turnbull Guidelines on internalcontrol.This risk management system is a principal factorfacilitating the discharge of the Board’s responsibility forensuring that the extensive risks associated with theGroup’s operations are effectively managed and theinterests of stakeholders safeguarded.Group risk management is achieved through theidentification and control of all significant business risks,including operational risk, which could adversely affectthe achievement of the Group’s business objectives.The Board has determined the level of acceptable risk andrequires the operations to manage and report in terms thereof.Material issues and circumstances which could adverselyimpact on the Group’s reputation are considered to constituteunacceptable risk.Fifteen significant risk areas have been identified whichform the basis for regular and exception reporting to theExecutive Committee and the Board.For each significant risk area, risk owners have beenappointed. Practical guidance for each risk area is detailedin the operational risk management handbook. The riskassessment and reporting criteria are designed to providethe Board with a consistent view of the key risks.The established system of internal control for themanagement of risk, which requires transparency and clearaccountability, has the commitment of senior management.The above-mentioned system of internal control, whichhas been implemented at all key operations and is tailoredto suit the specific circumstances of each Business Unit,provides reasonable rather than absolute assurance that theGroup’s business objectives will be achieved within theprescribed risk tolerance levels. The significant risk areasand control processes pertaining thereto are monitoredacross the Group on a continuous basis.In conducting its annual review of the effectiveness ofrisk management, the Board considers the key findingsfrom the ongoing monitoring and reporting processesand management and independent assurance reports. TheBoard also takes account of material changes and trends inthe risk profile and considers whether the control system,including reporting, adequately supports the Board’s riskmanagement objectives.The Board is satisfied that there is in place an adequateongoing risk management process which identifies, evaluatesand manages the significant risks faced by the Group.The Directors specifically report as follows:Responsibility for financialstatementsThe statement of responsibility for the financial statementsis set out in the Directors’ Report on page 130.The Board of DirectorsThe Company has a unitary Board that comprises sixExecutive and eight Non-Executive Directors. Mr L Boyd,the Chairman of the Board of Directors, is a Non-ExecutiveDirector. All the Directors bring to the Board a widerange of expertise as well as significant financial,commercial and mining experience and, in the case ofNon-Executive Directors, independent perspectives andjudgement.136