The Board of Directors (“Board”) of RFS views a robust and effective risk management process as a necessary and integral part of the day-to-day operations. The risk management process is based on the recommendations of the NamCode, the Corporate Governance Code for Namibia.  

As recommended by this Code, the Board holds ultimate risk management responsibility.  The Board sets risk management policies and ensures that these policies, as well as associated processes to implement these policies, function effectively.

The risk management activity is aligned to corporate and business plan objectives and priorities and is aimed to embed risk management at RFS into the daily operations. It encompasses strategic and operational risks that may prevent RFS from achieving its objectives.  Management therefore anticipates and takes preventative action to manage risks proactively rather than dealing with the consequences.

RFS established risk rating criteria in terms of impact (the financial, reputational and/ or legislative impact should a risk materialize) and likelihood (the possibility of a risk materializing). Criteria are formally reviewed annually and revised as appropriate. The impact rating criteria is also a reflection of the risk appetite of RFS.

Risks are managed at operational level whilst the Executive Committee (“Exco”) monitors threats, pursues opportunities and ensures that risks are identified, assessed, mitigated and managed.  Typical functional areas include the macro and micro economic environment, political, legislation, social, technological and Fund administration and accounting specific aspects.

Sustaining the strong risk management culture is fostered by the risk management process which includes the identification of risks, assessing the potential impact and likelihood of the risk materializing, implementing cost-effective mitigating actions and reporting on the results of this process to the Board via the Exco.

Exco meetings are held monthly whilst Board meetings are held quarterly.  Risk management is included in the agenda of every second Exco meetings whilst it is included in the agenda of every Board meeting.

The Manager: Internal Audit, Compliance and Risk Management is responsible to facilitate the risk management process.

In accordance with NamCode recommendations, the risk owners, who are the executive directors of RFS, have 2-monthly risk review meetings where functional areas are covered on a rotational basis to identify and assess material business risks, the rating of these risks and mitigating measures to address the risks and to review the overall risk management effectiveness. These results are reported to the Exco, highlighting changes and explaining the reasons for changes.