34

OUR APPROACH TO RISK MANAGEMENT in order to pursue our corporate strategy, because without embracing risk we can never hope to become a more successful company. Consequently, our approach is to retain risks where doing so contributes to value creation, but ensure the Group’s ability to withstand the impact of any adverse outcome. Therefore, we must have the necessary capabilities, expertise, processes and controls to manage all risks appropriately. Risks come in many forms: risks to capital we invest, risks of project failure, risks we might not perform well enough in new markets, risks from our supply chain, physical risks to our assets and our staff and risks to the good reputation we have worked so hard to build. Dr Adenike Fajemirokun Group Chief Risk Officer When things go well, the risks we have embraced will reap rewards that will enhance the value and the standing of the company. But when things go wrong, we very quickly learn that risks have consequences for our staff, for our assets, our business, our reputation, our valuation and for you, our shareholders. We must understand the myriad forms of risk we take and retain only those that are consistent with our aims. Risk is an intrinsic part of doing any kind of business anywhere in the world. As an entrepreneurial company it is natural and indeed essential that we take risks 34 Annual Report 2016 This is why we take risk management so seriously at Dangote Cement. We must understand the myriad forms of risks we take and retain only those risks consistent with our risk appetite, so we can fulfil our long-term commitments to our customers and shareholders. Back in 2014, we commenced the implementation of the Group Enterprise Risk Management Framework in Nigeria, using a holistic view of risk management that takes into account the diversity of risks we face, the relationships between them and the possible consequences, both individual and cascading, should any of these risks materialise. The following year, we broadened this approach to include all of our PanAfrican subsidiaries. What we have now is an Enterprise Risk Management Framework, governed by our Board and driven by a specialist team that takes a formalised approach to risk management across all our operations, using well-established methodologies and tools to identify, analyse and mitigate risks. Our appetite for risk is clearly and formally laid out and at all levels of decision

35 Publizr Home