NVFH 2020 Integrated Annual Report

Director
Number of
shares pledged
Class of
Securities pledged
Brendan Connellan 10,705,475 Ordinary Shares
Christopher Lemmon 500,000 Ordinary Shares
Nature and term of
financial obligation
12-month
interest only loan
5-year
interest only loan
Amount of Financial
Obligation
R5,057,000
R910,000
Paragraph 7.F.7
Paragraph 7.F.7 of the JSE Listings Requirements requires that an issuer discloses a description of material risks which are specific
to the issuer, its industry and/or its securities. The Group has a detailed risk register in place detailing all risks that have been
identified by the issuer and its subsidiaries. The risks are rated according to the probability of each risk materialising and the
likely potential impact to the Group and/or each subsidiary (as may be applicable) should any risk materialise. Each risk has
a risk mitigation strategy attached to it. Risk registers are assessed by the relevant boards of directors at each board meeting.
Directors are required to sign an attestation confirming that risks are adequately and appropriately disclosed and mitigated and
their understanding of their responsibility relating to the management of risks of the Group company that they are directors of.
Below is a summary of the main risks that are specific to the Group, the industry in which we are in and/or our securities. Please
note that these risks and the assesment of their probability and impact are fluid and are likely to evolve over time.
Probability of Risk Materialising
Impact (if Risk was to materialise).
Insert X where appropriate.
Mitigation
Risk Description
Probable
(51% or >)
Reasonably
Possible
(30% - 50%)
Remote
(30% or <)
Financial
Loss/Cost
Reputational
Damage
Regulatory
Censure
Operational
inefficiency
and/or
competitive
disadvantage
Risk
Adequately
Mitigated in
opinion of
Board?
Capacity Constraints: Being a
small to medium sized Group,
there is inherent capacity
constraint and “double hatting”
of key individuals. This has the
potential to adversely impact
the pace of future growth of the
Group. Focus must be applied
on capacitating key roles and
succession planning.
Risk of Loss of Key Role
Players: The performance and
sustainability of the Group is
vulnerable to departures of key
role players. There is potential for
the sustainability and profitability
of the Group to be negatively
impacted if certain key
individuals were to exit.
Risk of Uncompetitive
Remuneration Models: There
is an ongoing risk that Group
remuneration models, specifically
of income producing employees,
becomes uncompetitive or
inconsistent with the market. It
is essential that remuneration
models remain competitive
and aligned to Group strategic
objectives and growing
shareholder value.
B-BBEE Credentials: The Group's
lack of BBBEE credentials may
constrain future growth and
performance and place certain
existing institutional client
mandates and/or licences at risk.
Legal and Regulatory
environment: continues to
remain fluid and evolve over
time, with a potentially material
impact on the business and
modus operandi of the Group.
Key areas that need proactive
monitoring and attention are
the Retail Distribution Review
(RDR) as well as the Protection of
Personal Information Act (POPI).
X X Yes
X X Yes
X X Yes
X X In Progress
X X X X X Yes
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NVest Financial Holdings Limited | INTEGRATED ANNUAL REPORT 2020