Risk management is integral to the day-to-day operations of our businesses. The group is exposed to a variety of risks that can have a financial, operational or reputational impact. Effective management of risk supports the delivery of the group’s objectives and achievement of sustainable growth.
MultiChoice is committed to identifying and managing risk, in line with international best corporate governance practice, and applying the relevant rules and regulations.
The board is responsible for the governance of risk and is satisfied with the effectiveness of the risk management process. The risk committee, at which risk management plans and processes are presented, discussed and approved, was established during the year. A risk register of significant risks facing the group are discussed, as are management’s actions to control these risks within board-approved ranges of tolerance.
The MultiChoice group is exposed to a wide range of risks, some of which may have material consequences: the regulatory landscape, industry, competition, content, technology, innovation, business and supply chain interruption and compliance.
Identifying risk and developing plans to manage risks are part of each business unit’s business plan. These are assessed by the board annually.
The group’s risk profile is based on a structured, formal and planned approach to risk management. Identification, management and reporting of risks are embedded in business activities and processes. The policy applies to risks the group faces in executing its strategy, operations, reporting and compliance activities, and will be reviewed annually.
Risk Management Support advises on, formulates, oversees and manages the risk management system and monitors the group’s risk profile, ensuring major risks are identified and reported at the appropriate level in the group.
The MultiChoice enterprise-wide risk management (ERM) framework is designed to ensure significant risks and related incidents are identified, documented, managed, monitored and reported in a consistent and structured manner across the group. It is modelled on the Committee of the Sponsoring Organisations of the Treadway Commission Framework for Enterprise-wide Risk Management (COSO ERM) as well as on the Internationally accepted framework for IT governance (COBIT).