The ever increasing role of the Board in enforcing Risk Management Principles and Internal Control

At a strategic level in the company, our Board plays a leading role in setting a clear risk framework. This outline which risks the business will accept, and which it will seek to transfer or modify by negotiation, insurance, or a change of approach. Our strategic framework is set to be full integration into our existing organization’s processes. The day to day activities of the of the business support the overall risk management vision and the needs to be clear ownership and authority for risk decisions.

At Gadsome Integrated Resources Limited, our board of directors and senior management has the responsibility to push home the importance of internal controls through their actions and words. For example, senior management may weaken the control culture by promoting and rewarding managers who are successful in generating profits but fail to implement internal control policies or address problems identified by internal audit. Such actions send a message to others in the organization that internal control is considered secondary to other goals in the organizations, and thus diminish the commitment to and quality of the control culture.

The Board of Directors ensures that the company’s structure, culture, people, and systems are conducive to effective risk management; being their ultimate responsibilities for risk management. They defined the requirements for risk management and established by those charged with overall responsibility for running the business.

The board and executive management recognizes a wide variety of risk types and ensure that the control framework adequately covers all of these. As well as including market and credit risks, it should include operations, legal, reputation and human resources risks, that do not readily lend themselves to measurement. Furthermore, the Board approves the overall business strategies and significant policies of GADSOME and her subsidiaries, including those related to managing and taking risks, and ensure that senior management is fully capable of managing the activities that their entities conduct.

Our Board of Directors also assesses and defines the risk appetite for the company(s) that in turn depends on the risk culture of the Group. There is clear statement of the firm’s risk philosophy regarding financial risks. It is only when this has been defined, that the entity’s senior management can work out the company’s risk profile and formulate policies and guidelines relating to the management and control of these risks. These policies cover how and when financial instruments may be used in the broadest terms and must be developed in line with the company’s capital base, its business aims, its risk culture and its overall ability to manage and control risk. These guidelines must be comprehensive in nature and cover areas of financial policy, credit risk, market risk, operational risk, legal issues, human resource management, accounting, and reporting considerations, as well as culture, organizational structure, management information and internal control systems