Centamin recognises that nothing is without risk. A successful and sustainable business needs a robust and proactive risk management framework as its foundation, which outlines the Company’s approach and process for management of risk. Centamin’s risk framework is supported by a strong culture of risk awareness, that encourages openness and integrity, alongside a clearly defined appetite for risk. This enables the Board to consider risks and opportunities to improve our decision-making process, deliver on our objectives and improve our performance as a responsible mining company.
RISK OVERSIGHT AND ACCOUNTABILITY
The Board has overall responsibility for establishing the framework that allows for robust review of existing and emerging risks in the context of both opportunities and potential threats that inform the principal risks and uncertainties as set out below. Furthermore, this enables the Board to consider risks and opportunities to improve our decision-making process, deliver on our objectives and improve our performance as a responsible mining company.
Our approach incorporates international good practice, reflect the UK 2018 Code and ISO 31000 Risk Management Guidelines. The framework adopts a top-down and bottom-up approach, enabling thorough identification, assessment, mitigation and monitoring of risks throughout the business. There are three lines of defence to provide review and oversight whilst ensuring the information that flows from the reporting lines is relevant, timely and can genuinely support the Board’s strategic decisions.
Our approach to corporate governance has been developed to ensure that the Board understand the level of risk we are willing to take supported by a level of assurance that risk is appropriately managed and the system of internal controls are effective.
Executive and senior management, review, challenge and monitor ongoing risks on a day-to-day basis. The consolidation and analysis of this information is assessed on a quarterly basis and reported to the Board through the Audit and Risk Committee.
The Board accepts that the mining industry is a high-risk sector. The Group is cognisant of the risks which it faces, accepting their inherent nature whilst looking to ensure we recognise and maximise any opportunities that they create. When considering risk, the Board reviews the level of acceptable risk (tolerance), the attitude and culture towards risk and the ways in which it can influence risk appetite throughout the Group.
The Board considers risks both in terms of potential severity based on the ‘likelihood’ of the risk occurring, given the mitigating factors in place, and relative ‘impact’, should an event materially impact on the business to form a residual position. The risks are then considered against Centamin’s risk appetite to provide ‘themes’, which are those areas of concern that are discussed and debated.
The radar diagram shows the key information on the principal risks including the appetite of the Company to the particular risk, whether this is an external, strategic or operational risk, in addition to whether this is a refreshed or elevated principal risk for 2021.
To view our detailed Principal Risks and Uncertainties.