The following is a description of the EII’s Internal Control & Risk Management policies and procedures.
Internal Control
The Board of Directors has overall responsibility for EII’s system of internal control and for reviewing its effectiveness. Such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can provide only reasonable and not absolute assurance against material misstatement or loss.
Definition of Internal Control
EII broadly defines internal control as a process designed to provide reasonably ensure that operations are efficient and effective, financial statements and financial information are accurate and reliable and applicable laws and regulations are complied with.
Internal Control Policy
A key objective of EII is to ensure that internal controls are established, properly documented, maintained and adhered to in each department and subsidiary.
The Company’s Internal Control Policy is characterised by the following elements which are applicable to the EII and its subsidiaries:
- The Board of Directors should maintain an effective internal control framework to safeguard shareholders’ investment and the Company’s assets.
- Internal controls should include all types of controls including those of an operational and compliance nature, as well as internal financial controls.
- Management recognises its responsibility for the effectiveness of internal controls.
- An annual self-assessment on the effectiveness of key controls will be conducted and validated by the internal audit department.
Risk Management
Risk management establishes processes for identifying, analysing and managing those risks which could prevent an organisation from achieving its business objectives or strategies. It includes making links between risks/rewards and resource priorities. Risk management involves putting control activities in place to manage risk throughout the organisation by developing tailored risk management plans.
Risk Management Objectives
The objective of risk management at EII is to ensure that there is a structured process for identifying, assessing and managing material risks at the Company.
This process will be structured and overseen by management and the Board (through the Audit Committee) will be provided risk reporting pertaining to a listing of principal risks and the associated practices to manage those risks.
Risk Management Principles
The following are key principles of effective risk management at EII and its subsidiaries:
- Risk management is everyone’s responsibility.
- Risks are identified and managed through an integrated approach, incorporating the following aspects of risk management: Risk Identification, Risk Assessment (annual), Risk Prioritization, Risk Mitigation, Action Planning, Ongoing Reporting and Monitoring.
- Risk management will be an on-going part of the EII’s processes.Risk management process will be continuously improved to ensure that it reflects good industry practice, adds value to the business and is adapting to changes in strategic and business objectives.
