Risk management
Financial risk
Nature/ Description of Risks Construction expenses not aligned with expected cash inflows
Cluster Concerned
Risk Mitigation
Capitals impacted
| Monitoring to ensure funds are called on time from clients, payments are managed to minimise any negative cash flow peaks and in some cases, overdraft facilities are negotiated with banks.
Real Estate Hospitality
| Accurate budgeting and cost monitoring to avoid overruns.
Fluctuations in costs of imported raw materials
| Turnkey solutions negotiated with contractors and prices fixed upon construction contract signature.
Real Estate Hospitality Agribusiness
Risk of fraud
| Standard Operating Procedures are in place. | Code of Ethics and Whistleblowing Policy are being implemented. | Implementation of anti-money laundering and counter-terrorist financing policy and procedure. | Foreign exchange trading carried out at the best available rates. | Foreign currency loans to reduce funding costs. | Negotiations with banks for best market rates. | Consideration of foreign exchange hedging strategies as volume of foreign exchange trade increases. | Central treasury management. | Close monitoring of local statistics and information to anticipate market risks. | Awareness of financial developments and opportunities available to our business sectors. | Spreading credit risk concentration and exposure. | Dealing with reputable, creditworthy clients and implementing best- practice payment policies. | Monthly monitoring of debtors’ ageing and renewed agreement with long-term partner. | Prudent liquidity risk management through ensuring sufficient cash and funding. | Maintaining adequate credit lines. | Close monitoring of budgeting and well-defined projections in place. | Negotiating overdraft facilities and consideration of bridging facilities where applicable.
All
Interest rate and foreign exchange rate risk
All
Credit risk
All
Liquidity risk
All
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