The identification and management of risk is fundamental to achieving Iluka’s objective to deliver sustainable value. The company is committed to managing risk in a proactive and effective manner. We systematically identify and manage risk across all our business activities.
The Risk Management Policy sets the commitment, direction and intention of how we apply risk management. The policy is supported by a risk management framework which is aligned to the International Standard for Risk Management, ISO 31000.
The Board, through the Board Charter, delegates responsibility for identifying and managing risks and implementing effective controls to management. Management reports to the Board every six months on those risks which could have a material impact on the company’s business. Emerging risk is a standing Board agenda item. Risks identified through this process are incorporated into the Iluka corporate planning process. The Audit and Risk Committee assists the Board in overseeing the company’s risk management practices.
Through its risk management framework Iluka seeks to:
• apply a structured and systematic risk management process across the Iluka Group;
• embed a culture of risk awareness by integrating risk management into our business activities and processes;
• identify, assess and manage risks in a structured and systematic manner;
• enable prudent risk taking in line with business objectives and strategies;
• establish and monitor the effectiveness of controls in line with agreed risk tolerances;
• ensure material business risks are effectively identified, communicated and appropriately elevated throughout all levels of management and to the Board;
• implement appropriate insurance strategies;
• regularly assess the effectiveness of the risk management process and risk controls; and
• continue to fulfill governance requirements for risk management.
We assess the consequence of risk across a number of areas including environment, injury, illness, community, compliance, financial, company objectives and reputation. Company risks, and how they are being managed, are reviewed and updated by the Executive regularly and are reported, along with the Executive’s assessment of the company’s risk profile, for approval by the Board twice yearly. The key business risks and mitigations for Iluka are detailed on pages 40 and 41 of the 2019 Annual Report and these align with the topics identified in the materiality assessment.