The Board acknowledges that the ERM implementation and practice is a continuous journey, therefore all members of DNeX Group are committed to adopt the ERM practices continuously and consistently. The ERM has been designed to: RISK APPETITE The risk appetite is set by the Board with the goal of aligning risk taking with strategic business objectives and statutory requirements. The risk appetite is thereby embedded in the company’s processes and decision making and affects the operations of DNeX in a holistic way. The risk appetite enables the Board and Management to acknowledge the types and levels of risk that DNeX Group is willing to accept in pursuing business and strategic goals and guide the employees with respect to acceptable and unacceptable behaviour. Thus, the risk appetite is embedded in day-to-day business activities and decision making throughout DNeX Group. The specified material risk areas amongst others are strategic, financial, operational, regulatory, technological and reputational risks. RISK GOVERNANCE AND OVERSIGHT In recognising the importance of risk management and the internal control system in DNeX Group’s governance process, the Board has put in place formal lines of responsibility and delegation of authority through the institution of the following:- 1 create shareholder value through the application of a sound risk management framework, 4 ensure sufficient resources are available to enable effective risk management; and 2 provide a standardised risk management policy and procedures to be adopted and embedded across DNeX Group; 5 institute a strong awareness of risk and an appropriate risk culture. 3 ensure proper governance and oversight function through transparent roles and responsibilities of the Board and across all levels of employees in respect of risk management; Board of Directors Audit Committee Risk, Governance and Sustainability Committee Management Committee Risk and Business Process Management Department Risk Owners/ Co-owners Staff Embedding risk management policy & strategy Monitoring policy and implementation Risk reporting & monitoring Ensure accountability Identification, assessment, implementation & monitoring risk action plan Board of Directors of Subsidiaries Internal Audit External Audit Integrated Report 2023 169
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