Sasol Integrated Report 2022 - Book - Page 32
INTRODUCTION | ABOUT SASOL
CREATING VALUE
STRATEGIC OVERVIEW
DELIVERING
GOVERNANCE AND REWARDS
ADMINISTRATION
RISK MANAGEMENT (CONTINUED)
Managing our Group top risks (continued)
Governance and oversight of risk management
Strategically managing our Group top risks
Our governance and oversight of risk management is conducted in alignment with our governance
framework and Board Management Committees’ terms of reference which also guide risk management
reporting into these committees.
The Sasol Group top risks are continuously managed, monitored and reviewed in line with the Group’s business
imperatives considering our materiality lens, our material matters, top priorities, sustainability focus areas
and the six capitals. The review of our Group top risks is further tested against major internal and external
developments reported through our emerging risks (watch list) process, plausible business scenarios and
appropriate risk flags. Business scenarios are customised and stress tested against progressive international,
regional and national scenario parameters as well as key driving forces.
Board-level risk
governance and oversight
The Board
• retains overall accountability
for the governance of risk
• mandates Board Committees
to assist the Board in giving
effect to its accountability
• receives regular assurance
on the significant risk areas facing
the Group and plays a pivotal role
in ensuring appropriate responses
to the top risks and current
heightened risks facing Sasol
• appoints independent advisors, as
necessary, to assist with obtaining
assurance on select key responses
and management actions
related to the heightened
short- to -medium-term
financial and operational risks
facing the Group
Board
Board
Committees
Group top risks
Management-level risk governance and oversight
• The Board delegates
responsibility to implement
and execute effective risk
management to the Chief
Executive Officer (CEO) who in
turn delegates to the Group
Executive Committee (GEC)
• Executive Vice Presidents (EVPs)
as members of the GEC are
accountable for management
of risks within their
areas of responsibility, with
delegated responsibility and
ownership to the businesses
and Corporate Centre
• In line with the new operating
model structure, the
governance and oversight
of risk management has
further been enhanced
through delegated
responsibility to the businesses
and Corporate Centre including
executing and operationalising
of risk management in line with
established business protocols
Group strategy and scenarios,
business imperatives and objectives
Functional top risks
through engagements with Corporate Centre
Changes in
the internal
and external
business
environment
Top-down and bottom-up process
to develop Group Top Risks
Business top risks
through engagements with business stakeholders
Emerging risks on watch list
through engagements with internal
stakeholders and sourcing of risk intelligence
from external sources
CEO
(and the
GEC)
GEC SubCommittees
EVPs
Group and Business top risks
Monitoring of Group top risks
Enabled through risk pressure flags aligned
with business imperatives (KPIs), initiatives,
strategic scenarios and emerging risks
GEC1s and management
Business and
Functional top risks
SASOL INTEGRATED REPORT 2022
31
Group themes and top risks
Group top risk
one-pagers
KPI dashboards
per Group
top risk
Quarterly risk
reports to Board
and Board
Committees
Assurance in
respect of the
Group top risks
provided based on
the Combined
Assurance Model
