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| RISK COMMITTEE |
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| The risk committee assists the Board with oversight
of the development and implementation of the group
risk framework. |
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| MEMBERSHIP |
| RT Vice served as chairman of the committee and
IN Mkhize and MJ Shaw as members during the year
under review. Subsequent to the year end, SP Sibisi was
appointed a member of the committee. The group chief
executive, group financial director, group corporate
services executive and group risk manager attend
meetings ex officio. The committee met three times
during the year under review and its terms of reference
were reviewed and approved by the Board on
25 April 2007. |
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| GROUP RISK FRAMEWORK |
The group risk framework seeks to regulate the entry of
risk into Murray & Roberts and systematically manage
threats, while exploiting opportunities to contribute
towards performance.
Murray & Roberts Holdings has a system of delegated
authority which governs decisions affecting acquisitions
and disinvestments, asset investments and contracts.
A risk committee of the Murray & Roberts Limited Board
(MRL) acts as custodian of the group risk appetite, reviews
group level risk and interrogates key decisions prior to
board approval. A risk committee has been established
to support the Murray & Roberts International Board. |
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| RISK MANAGEMENT |
| Risk management entails assigning ownership,
developing mitigation plans, resource allocation,
implementation, periodic review and formal
communication. The software application, KnowRisk, is
being implemented to support the risk management
process and the management of operational, project and
HSE risk knowledge bases. |
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| INTERNAL AUDIT |
| The Group has adopted a risk based approach to internal
audit, aimed at testing the integrity of controls managing
significant exposure. The existing internal audit structure
includes a group audit manager, dedicated operational
resources, peer review at operational level and
management review at board, exco or project meetings.
Self assessment is inherent in half year and year end
procedures and there is ad hoc high level peer review by
experienced corporate executives. Approximately two thirds of companies within the Group are ISO 9001
accredited, with established quality management
procedures, quality assurance, control functions and
regular audits of procedural compliance. |
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| GROUP INSURANCE |
| Murray & Roberts has a group insurance program
covering RSA-based asset and liability risks. For risks
outside South Africa there is a difference in cover
provision within the program. |
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| CLAIMS AND LITIGATIONS |
| A schedule of active claims and disputes, both for and
against Murray & Roberts, is maintained. Group legal
counsel, commercial executives in the operations, and
external legal and commercial consultants manage the
Group's contractual risk. |
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| BONDS AND GUARANTEES |
| Opportunity authorisation in the opportunity management
system sets a process discipline ahead of the issuing of
bonds and guarantees, which is integrated with the treasury
management system utilised for guarantee administration. |
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| FORENSICS |
| "Ask Brian" on the Interchange and the CE Discussion
Forum on the website promote transparent direct
communication with the group chief executive. Tip-offs
Anonymous, an independent hotline service provider,
supports reporting of workplace dishonesty. The Group
employs a firm of forensic consultants and investigators
that reports directly to the group chief executive. |
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| GLOBAL ENGAGEMENT |
Murray & Roberts is a member of the World Economic
Forum (WEF), with the group chief executive serving as
an engineering and construction governor.
The Group is a founding member of the Engineering &
Construction Risk Institute, an association of global
engineering and construction companies, formed by the
World Economic Forum, which aims to institutionalise
sound risk management practice in the Industry.
Murray & Roberts is a signatory to the United Nations Global
Compact on Transparency and Crime and actively
participates in the WEF Partnership Against Crime Initiative. |
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| Royden Vice |
| Chairman |
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Governance