Page 22 - Niveus - Integrated report 2013

Application of and approach to King III
Niveus is subject to the JSE Listings Requirements and believes that compliance with
the guidelines contained in the King Code on Governance Principles for South Africa
2009 (“
King III”) will promote good corporate governance.
Niveus believes that, in all material aspects, it complies with the major recommen­
dations of the code. A detailed analysis of compliance to the individual principles
is detailed on the Niveus website.
The board acknowledges that it is accountable for the process of risk management
and the systems of internal control of Niveus. The group operates in a highly regulated
environment and, where necessary, compliance officers have been appointed at
each of the subsidiaries to ensure adherence to the various Acts and Codes that
govern the day-to-day operations.
Each subsidiary has its own board of directors responsible for the management,
including risk management and internal control, of that company and its business.
Internal control structures have been implemented to ensure that significant business
and financial risk is identified and appropriately managed.
Niveus manages risk in the group by means of risk registers for the gaming division
and for KWV. While risks are considered at every audit and risk committee meeting
and reported to the board when appropriate, formal risk registers are only updated
annually. The risk registers monitor emerging and existing risks according to
likelihood and impact, and also report on mitigating controls implemented to prevent
the occurrence of incidents. The risk registers are considered by the internal audit
team in the planning of internal audit procedures.
Internal audit
The group internal audit function is established through the audit and risk committee
by the board, which is ultimately responsible for overseeing the establishment
of effective systems of internal control to provide reasonable assurance that the
financial and non-financial objectives of Niveus and its subsidiaries are achieved.
Executing this responsibility includes the establishment of a group internal audit
function in accordance with the internal audit charter. Internal audit is an independent
and objective assurance and consulting activity that is guided by a philosophy
of adding value to improve the operations of the group. It assists the group in
accomplishing its objectives by bringing a systematic and disciplined approach to
evaluating and improving the effectiveness of the risk management, internal control,
and governance functions and processes.
The chief audit executive (“CAE”) reports directly to the audit and risk committee.
The CAE provides feedback on any material matter identified by the internal audit
procedures and detailed in the internal audit reports.
Niveus Investments Limited integrated Report 2013