Audit and risk management report
Risk management is integral to the effective implementation of our strategy. We proactively manage risk to remain a competitive and sustainable business. This enhances our operational effectiveness and enables us to create continual value for the benefit of our employees, shareholders and other stakeholders in line with our growth strategy.
Key risks and effective mitigators
|*||New risks identified in 2018|
As an outcome of the group’s risk management process, we identified material changes in the risks affecting the business. These relate primarily to the impact of ongoing drought in Cape Town, as well as managing the integration risk related to the significant acquisitions undertaken during the year. This includes managing currency, interest rate and tax risks in an offshore jurisdiction to ensure financial targets are achieved.
Ultimately, the directors consider whether Stor-Age and its subsidiaries have adequate resources to continue operating for the foreseeable future.
The company has reasonably satisfied the liquidity and solvency test as required by the Companies Act of South Africa. The directors have further satisfied themselves that the company and its subsidiaries are in a sound financial position and have access to sufficient facilities to meet their foreseeable cash requirements.
The board, via the audit and risk committee, has considered the effectiveness of the risk assessment and management process and is satisfied of the effectiveness thereof.
Audit and risk committee Chairman
11 June 2018