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
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 challenging South African economic climate currently being experienced, as well as the significant increases in administered utility costs by the local authorities.
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, 71 of 2008, as amended. 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 as to the effectiveness thereof.
Chairman: audit and risk committee
11 June 2019