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RISK MANAGEMENTIn pursuance of its policy of aligning Group corporate governance with international best practice andthereby safeguarding the interests of stakeholders, the Executive Committee has been mandated by theBoard to supplement the Group-wide system of internal controls to monitor, manage, and control significantGroup risks. The achievement of these objectives is enhanced through compliance with, and observance of,the UK Turnbull Guidelines on internal control and King 2.This risk management system is a principal factor facilitating the discharge of the Board’s responsibility forensuring that the extensive risks associated with the Group’s operations are effectively managed and theinterests of stakeholders safeguarded.Group risk management is achieved through the identification and control of all the main business risks,including operational risks, which could adversely affect the achievement of the Group’s businessobjectives.The Board has determined the level of acceptable risk and requires the operations to manage and report interms of this. Material issues and circumstances that could adversely impact on the Group’s reputation areconsidered to constitute unacceptable risk.Uncertainty is an inherent part of Anglo Platinum’s business, affecting the Group both on the upside and thedownside. In order to manage this uncertainty, the Group has identified risk areas, which form the basis forregular and exception reporting to the Executive Committee and the Board. The Group faces not only therisk of unforeseen events or circumstances, but also that of inaction or events not occurring. For example,the Group believes that the economic transformation of South African society made possible by newempowerment legislation represents a unique opportunity to the industry of reducing the long-term risk ofdoing business.Owners have been appointed for each risk area. Practical guidance for each risk area is detailed in theoperational risk management handbook. The risk assessment 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 clear accountability, has the commitment of seniormanagement.The above-mentioned system of internal control, which has been implemented at all key operations and istailored to suit the specific circumstances of each business unit, provides reasonable rather than absoluteassurance that the Group’s business objectives will be achieved within the prescribed risk tolerance levels.The risk areas and control processes pertaining thereto are monitored across the Group on a continuousbasis. In conducting its annual review of the effectiveness of risk management, the Board considers the keyfindings from the ongoing monitoring and reporting processes, and management and independentassurance reports. The Board also takes account of material changes and trends in the Group’s 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 adequate ongoing risk management process that identifies,evaluates, and manages the main risks faced by the Group.96