The directors acknowledge their responsibilities for the Group's system of risk management. Such a system can provide reasonable, but not absolute, assurance against material misstatement or loss. A review of the process of risk identification, evaluation and management is carried out regularly and presented to the board for discussion and approval.
The review process considers the control environment and the major business risks faced by the Group. Such risks include, but are not limited to:
- the effects of coronavirus Covid-19;
- Indonesia country risk;
- supervision of operations;
- relationship with local populations;
- relationship with local partners;
- protection of the environment;
- damage wrought by pests and disease;
- commodity-price fluctuation;
- weather and natural disasters;
- exchange-rate fluctuation.
Important control procedures, in addition to the day-to-day supervision of holding-company business, include regular executive visits to the areas of operation of the Group and of its associates, comparison of operating performance and monthly management accounts with plans and budgets, application of authorisation limits, internal audit of subsidiary undertakings and frequent communication with local management.
Further information on risk management, and the Group's response to each of the identified principal risks, is included in the risk management section of the Group's annual report 2020 Annual report.