Page 70 - CJ 2019 INTEGRATED REPORT

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Management
OVERVIEW
Effective risk management is is fundamental to CJ’s success and objective of delivering sustainable long-term value
to to our our stakeholders We recognise that certain risks are inherent to to our our our core business lines which explains one
of of of our our our strategic pillars of of of diversifying these risks through our our scale a a a a a a a a a a mixed portfolio of of of products and and services and and and geographic expansion A rigorous Risk Management
framework is is embedded across the Group and and its subsidiaries through robust systems of governance committees policies and tools Risk management management assists management management in in in in in minimising managing and and effectively mitigating the impact of risks and and in in in in in maximising potential opportunities that arise
from key risks to realise the the desired value
During our Annual Operating Plan exercise the the Group undertakes a a a a a a a a a comprehensive strategic thinking process across business sectors This cross-divisional collaborative exercise enables us to to to link the the organisation’s risk appetite to to to our strategy understand the the related opportunities that emerge and and adequately adjust our our strategy to reach our our goals The Group’s three-year strategic plan was built and and developed following this exercise and and and taking into account current and and emerging external trends Only by integrating risk management into our our our culture and day-to-day behaviour can our our our our framework be be be effective It encourages the the sharing of information and and best practices fosters openness and and and transparency in in in in the the decision-making process and and and is is conducive to to to a a a a a a a a a strong commitment to to to ethical behaviour and and to to the Group’s core values The aim ultimately is is to to develop our risk management capabilities into a a a a a a a a a a a a a a a a a a sustainable competitive advantage so so we can attain our our expected potential earnings consolidate our our brand reputation generate shareholder returns and and above all remain resilient in in a a a a a a a a a a dynamic environment COVID-19
The COVID-19
pandemic of of 2020 represents an an unprecedented period of of uncertainty as regards the economic environment customer preferences and risk for business organisations worldwide The measures taken to to slow down the the the spread of of the the the pandemic are impacting both the the the supply and and and and demand for goods and and and and services All of of our businesses have taken a a a a a a a a a hit some to a a a a a a a a a lesser degree than others depending on on the the the the industry in in in in in in which the the the the company
is operating and and we are closely monitoring the the the the the outbreak developments and and and implementing plans to to mitigate the the the potential adverse impact on on the the the Group employees and and operations The The hardest hit is the the the hospitality sector as as the the the industry has been brought to to to a a a a a a a a a complete halt The The immediate responses by the the Group companies were to:
• Activate the business continuity protocols in in in such situation and and ensure appropriate policies and and controls are in place for the new work environment • Assess the the the the resilience of the the the the businesses in in in the the the the short term by focusing on on the the the the employees’ health safety and and and continuous engagement and and and ensuring that that our customers are are serviced as as best as as possible and and and that that our immediate liquidity needs are are met • Review of each company’s cost base all capital expenditure planned and revisit our debt repayment plans so as to to further strengthen the the the the liquidity available to to the the companies Having completed the the above our attention was focused on on on how to optimise revenue of of the the the the different businesses This was complicated given the the the lack of of visibility on on on on on the the the macro economic situation and also no no clear indication
of of how customer behaviours would would evolve This would would cover revenue in in in terms of of of existing and and and new products and and and markets but also a a a a a a a a a a a review of of our business model and and and organisational structure so so as as to to to be be able to to to best cope with the new environment supply chain factors and increased use of technology RISK MANAGEMENT MODEL AND
GOVERNANCE
Our model is guided by the predominant corporate governance principles of fairness accountability responsibility and and transparency Beyond having various risk and and and control functions in in place we believe it it it is is critical to to adopt a a a a a a a a a a a a a a a systematic and and and collaborative approach
across the the the organisation and and to to to ensure ensure an an an an effective coordination among these functions to to ensure ensure ensure there are no gaps in in in controls or or or overlapping of of tasks To ensure ensure the the the effectiveness of of of CJ Group’s Risk Management
framework the the Board uses the the Three Lines of of Defence model which clearly outlines each group’s responsibilities the the the the the boundaries of their their duties and how their their roles fit into CJ’s overall risk management structure The Board of of Directors is is is at the the the top of of the the the Risk Governance structure and is is is is is responsible for the the the overall approach
to to risk risk management This includes determining the the nature and extent of exposure to to to to key risks defining the the steps CJ is is is willing to to to take to to to achieve its strategic objectives and and establishing governance structures and and processes to manage these key risks The Board Board is is is assisted by the the Group Board Board Audit and and Risk Committee in in in assessing and and evaluating the the adequacy of our Risk Management
framework The Group Risk Management
function at the the level of CJ CJ oversees and and and and assists CJ CJ and and and and its subsidiaries with the the identification and and and and assessment of of risks and and and and adoption of of appropriate mitigation measures RISK CURRIMJEE JEEWANJEE AND
COMPANY LIMITED