Sasol Integrated Report 2024 - Book - Page 30
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
RISK MANAGEMENT
RISK MANAGEMENT IS INTEGRATED INTO OUR DECISION-MAKING PROCESSES AND DAILY OPERATIONS
Risk management is a dynamic and integrated process considering the ever-changing context within which we operate. We strive to manage risks within our control and aim
to capitalise on the opportunities they may present. We also monitor and evaluate factors outside our control, such as the rand/US dollar exchange rate, crude oil prices, as well
as gas and coal prices, given their unpredictability and the influence they have on our existing and future business. Additionally, we continuously assess and address the diverse
expectations of our many stakeholders. In the short to medium term, elevated uncertainty will persist in light of sluggish global and South African economic growth, geopolitical
developments, market conditions, cash pressures and cost increases.
Our risk management approach
In pursuit of our Purpose and ambition, our approach to risk management is inextricably linked
to our strategic objectives, Material Matters and Group top priorities. It is an integral part of
management at all levels and is integrated into our decision-making processes and daily operations.
The execution of risk management in Sasol is guided by our Enterprise Risk Management (ERM)
Framework and supported by the One Sasol ERM Approach, directing our behaviours, governance,
management, and reporting of material risks.
Our ERM approach further incorporates our Business Continuity Management (BCM) programme
which includes emergency and crisis management response. It typically deals with highly disruptive
and unexpected events which may have a material impact on our business operations. To date, good
progress has been made in embedding our BCM programme, including annual Group crisis response
simulation exercises to assess our ability to respond should a major crisis materialise.
In progressing our overall maturity of risk management, we are focusing on managing material
risks that have the potential to impact current business performance (short-to-medium term
‘business of today’) and strategic risks (medium-to-long term ‘business of tomorrow’).
OUR ENTERPRISE RISK MANAGEMENT FRAMEWORK AND APPROACH
Across our business, we apply
a standardised process,
as contained in our framework
and approach, in identifying,
understanding and responding
to material risks that could
potentially impact the
achievement of our strategic
objectives. In this way,
we improve our ability
to address shortto-medium-term performance
risks and longer-term
‘beyond-the-horizon’ risks.
Improve risk management
4
1
• Improve risk management
process efficacy
• Understand the business context
• Analyse and share learnings
3
• Governance over risk management
• Assurance over the risk management
process and key responses
• Reporting within the governance framework
SASOL INTEGRATED REPORT 2024
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• Identify the relevant risks and key responses
associated with delivery of business objectives
(short, medium and longer term)
Effective
decisionmaking
• Develop action plans to improve
effectiveness of managing risks
and risk maturity
Review risks
Plan and identify risks
• Understand and assess the risk events
2
Manage risks
• Execute key responses and management
action plans
• Monitor status of risk events
