Page 224 - SAMRC AnnualReport 2025-26

ENTERPRISE RISK MANAGEMENT/
RISK AND OPPORTUNITY MANAGEMENT

The SAMRC Board bears ultimate responsibility for organisation's emerging and significant risks. The
risk management, with the Audit and Risk Committee Corporate Risk Management unit at SAMRC is a
(ARIC) supporting this role by overseeing the dedicated department that reports directly to the
effectiveness of risk processes and internal controls. ARIC and has primary responsibility for the design,
Risk management is integrated into corporate implementation and monitoring of corporate
governance, involving proactive participation from enterprise-wide risk management across the SAMRC.
executives and accountability at all employee levels.
The SAMRC adopts an iterative risk management SAMRC’s philosophy of risk management entails
process that begins with risk identification, which is the proactive management and mitigation of risks,
the responsibility of every employee. The ARIC also and the exploitation of related opportunities, under
supervises both internal and external auditors to the guidance of the SAMRC Board, President,
ensure prompt reviews of any control weaknesses. and Executive Management. The SAMRC’s risk
management policies are established to identify
The risk management approach aligns with and analyse the risks faced by the SAMRC, to set
international frameworks such as COSO and ISO appropriate mitigating strategies, and to monitor
31000, and complies with the recommendations of risks and adherence to the strategies.
King IV. It emphasises ongoing risk identification,
assessment, and mitigation, integrated with The Board maintains a balanced approach to risk,
opportunity management. The Board has reviewed enabling the SAMRC to pursue opportunities that
the comprehensive Risk Management Policies and are risk-adjusted without unnecessary constraints.
systems implemented by management, which include To address various risk dimensions, both the Board
continuous risk and opportunity identification and and the CEO rely on the expertise of the Executive
assessment, embedding of internal controls, as well Management Committee and senior management.
as risk reduction. The Risk Management Policies and
systems are reviewed annually to reflect changes in Our risks and opportunities
industry practices and the SAMRC’s activities, and Significant risks and opportunities are identified
any proposed amendments are submitted to the through a comprehensive strategic risk review,
ARIC for consideration and recommendation to the during which the Executive Management and
Board for approval.
Board assess their implications for achieving
The Board closely oversees committee activities SAMRC’s strategic objectives. When warranted,
and receives regular updates from ARIC on risk supplementary mitigation strategies are formulated
management and strategic mitigation, with reviews and executed to strengthen risk management
included in the SAMRC Annual Report. processes. Each business unit is accountable for
identifying, assessing, and managing risks pertinent
Risks are reviewed throughout the year, and this to its operations. For each risk, appropriate
continuous process informs any updates to the mitigation measures are determined, and the
SAMRC’s risk registers at both strategic and residual exposure is evaluated against established
operational levels. Strategic risk assessment includes criteria.
consideration of probable future scenarios, taking
cognisance of, inter alia, political, environmental, Risks and opportunities are continuously recognised
social, technological, economic, and legislative throughout the year via ongoing engagement with
developments in both the SAMRC and global business units, involving assessments of probability
environments. and potential impact on SAMRC. The most material
risks are submitted to ARIC for evaluation. Risk
The ongoing review of the risk management process
ensures that best practices are considered while dashboards monitor quarterly progress and report
maintaining a practical, business-minded approach. outcomes to the Executive Management Committee
and ARIC as part of SAMRC’s risk management
The SAMRC’s comprehensive risk management framework. These quarterly reports facilitate
system is designed to identify and assess the communication regarding emergent issues, risks,

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