• Connectivity of information
• Stakeholder relationships

Key observations:

Exxaro shows a unique and comprehensive approach to the company’s risk and compliance disclosure, taking into account stakeholders’ perspectives, in addition to their controls. The risks are identified around the company’s five sustainability capitals and are controlled through the three tiered management structure. The diagram of the risk management structure on page 24 aligns well with the governance structure, and also demonstrates how information and communication are managed at Exxaro.

The report features fifteen risks that have significant implications on the company’s ability to realize its strategy. These risks are interestingly discussed under headings including: strategic focus area; potential impact; residual risk trend; sustainability capitals; mitigation; and key performance indicators – linking to each risk is also displayed. The company also discusses the mitigating controls of which the following risk heat-maps showcase the potential impact and probability of occurrence.

The company’s approach to risk management is further developed by the way Exxaro determines the risk appetite. This provides readers with a valuable insight into the process taken by management in decision making.