Risk management

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:

• adverse weather
• climate change
• flood and water incursion
• pests and disease
• change in prices
• exchange-rate fluctuation
• inflation

• taxation
• succession planning
• environmental obligations
• relationship with local populations
• reporting obligations
• Indonesian regulatory environment
• international regulatory environment

• bribery and corruption
• land rights dispute
• information security

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 2023 Annual report.