Sasol Integrated Report 2023 - Book - Page 32
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
OUR RISK MANAGEMENT CONTINUED
Our risk management
Approach
We proactively incorporate risk management in
pursuit of our Purpose and ambition. Our approach
is intricately connected to our strategy and plays
a crucial role in promoting good corporate
governance and effective leadership. It is an integral
part of our management at all levels and integrated
into our decision-making processes and daily
operations.
Furthermore, we focus on identifying and
understanding significant uncertainties across
our business that could potentially impact the
achievement of our strategic objectives. Central
to this is providing a detailed view of uncertainties
based on current business versus a forward-looking
view. In this way, we focus on improving our ability
to identify and address longer-term ‘beyond-thehorizon’ risks that ordinarily fall outside current
operational management responsibilities.
Philosophy
Our risk management philosophy is anchored in
our Risk Policy and directs our enterprise risk
management (ERM) framework which is supported
by our ERM approach. These guiding documents
direct our behaviours, governance, management
and reporting of top risks to ensure a common way
of practising risk management. Fundamental to
our ERM Framework is our Business Continuity
Management programme and Group Crisis process
which deal with highly disruptive and unexpected
events with material impact.
Our enterprise risk management (ERM) process
We follow a standardised Plan, Do, Review and Improve (PDRI) model, which is applied within a dynamic operating context to enable the
management of top risks.
1
2
PLAN
• Understand and establish context
• Identify risk events
• Execute key responses/critical controls
and action plans
• Understand and assess risk events
• Monitor status of risk events
OUTCOMES:
Risk profile, key responses/critical controls
and Combined Assurance Model (CAM) plan
OUTCOMES:
Effective management of the risk and
key response/critical control environment
CONSULTATION AND
COMMUNICATION
Accountability
The responsibility of ERM execution resides
with the Chief Risk Officer, who is responsible for
enabling enterprise risk management across the
organisation, aligned with changes in our operating
model and approved delegation of authority levels.
Our approach to risk
management is intricately
connected to our strategy,
strategic objectives,
material matters and
Group top priorities.
DO
4
3
IMPROVE
REVIEW
• Improve risk management process efficacy
• Governance over risk management
• Analyse and share learnings
• Assurance over enterprise
risk management
• Develop action plans
• Report within the governance framework
OUTCOMES:
Improvement actions to enhance
risk management
SASOL INTEGRATED REPORT 2023
OUTCOMES:
Assurance over the effectiveness
of the risk management process
31
