ethics
Risk management
Effective risk management is imperative to a group with GPI’s risk profile. The realisation of the business strategy depends on GPI being able to take calculated risks in a way that does not jeopardise the direct interests of stakeholders. Sound management of risk enables GPI to anticipate and respond to changes in the business environment, as well as take informed decisions under conditions of uncertainty. Every key risk in each part of the group is included in a structured and systematic process of risk management. All key risks are managed within a unitary framework that is aligned to the group’s corporate governance responsibilities.
The nature of the group’s risk profile demands that GPI adopts a prudent approach to corporate risk and GPI’s decisions around risk tolerance and risk mitigation reflect this. Nonetheless, the group’s response to risk remains flexible and dynamic so as not to hinder the group’s growth with inappropriate and burdensome controls. Controls and risk interventions are chosen on the basis that they increase the likelihood that GPI will fulfil its intentions to stakeholders, being the maximising of long-term shareholder value.
The risks to which the group’s existing investments are exposed are continuously identified and mitigated in terms of a group process that allocates responsibility, determines the action to be taken and monitors compliance with that action. This involves managing a changing and challenging gaming environment and industry, as well as pursuing new business opportunities on a continual basis.
Accountability and audit
External audit
The external auditors provide the board and the audit committee with their independent observations and
suggestions on the group’s controls, as well as suggestions for the improvement of the financial
reporting and operations of the business. The external auditors’ audit approach is risk based, requiring them to continually identify and assess risk throughout the audit processes. The external auditors are reliant on the operating procedures and place emphasis on understanding how management obtains comfort that the business is generating reliable information and then evaluating and validating the basis of this comfort.
Internal control
The board of directors is responsible for the group’s systems of internal control. These systems are designed to provide reasonable but not absolute assurance as to the integrity and reliability of the financial statements and to safeguard, verify and maintain accountability of its assets and to detect and minimise significant fraud, potential liability, loss and material misstatement while complying with applicable
laws and regulations.