Sasol Integrated Report 2024 - Book - Page 32
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
DATA AND ASSURANCE / ADMINISTRATION
REMUNERATION REPORT
RISK MANAGEMENT continued
RISK MANAGEMENT IS INTEGRATED INTO OUR DECISION-MAKING PROCESSES AND DAILY OPERATIONS
Managing our Group risk appetite and tolerance
continued
Strategically managing our Group top risks (GTRs)
We aim to understand the material risks to our organisation and take proactive and effective
measures to manage them in line with our risk appetite and risk tolerance, as we focus on
optimising returns and delivering value to our stakeholders.
Sasol’s GTRs are managed, monitored and reviewed considering:
We define risk appetite and tolerance as follows:
• Strategy, goals and objectives;
• The Group’s ambition and Purpose;
• Group top priorities and KPIs; and
• Risk appetite and risk tolerance metrics.
RISK APPETITE
Extent and type of risk we are willing to take in order to meet
our strategic objectives.
Our annual review of the GTRs involves an in-depth analysis of key uncertainties significantly
affecting our business and operations. This includes examining internal and external risk
developments, as well as relevant industry and other risk reports from recognised risk
institutions or bodies.
RISK TOLERANCE
Furthermore, our strategy, goals and objectives are connected through our four identified business
imperatives known as Aspects (in supporting our sustainability intent) to our GTRs. Our integrated
approach to risk management is linked with the triple-bottom-line outcomes (People, Planet and
Profit), Sustainable Development Goals and Material Matters, to preserve and create shared value.
Level of risk we are prepared to accept. We identify the maximum
boundary, beyond which we are unwilling to operate.
Aligned with the Group's approved risk appetite and tolerance levels, we actively manage risk
exposures associated with debt covenants and gearing to strengthen our balance sheet. As we manage
and monitor our GTRs, we assess the levels of risk appetite and tolerance regarding our established
metrics of net debt to EBITDA, gearing and net debt. We regularly review and update performance
against our risk appetite and tolerance metrics, giving consideration to associated risks.
1
ASPECT 1: SHORT-TERM BUSINESS RESILIENCE AND VIABILITY
2
ASPECT 2: MEDIUM- TO LONG-TERM BUSINESS VIABILITY AND SUSTAINABILITY
3
ASPECT 3: EMPLOYEE VALUE PROPOSITION
4
ASPECT 4: STAKEHOLDER IMPACT
GROUP RISK THEMES
Our GTRs are defined under the following key risk themes which are prioritised and managed
to support the delivery of our top priorities across different timeframes (short, medium and
long term). Management and the Board provide steer on an ongoing basis to ensure that risk
and assurance efforts are focused on areas deemed critical to support business imperatives.
Financial
Geopolitical
Safety
Market
Operational
Sustainability and Transition
Legal, Regulatory and Governance
People
Information Management
Stakeholder
Capital Investment
SASOL INTEGRATED REPORT 2024
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