Risk Management and Financial Reporting
Risk management and financial reporting
The directors are required to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the Group at the end of the financial period and of the profit or loss and cash flows for that period. In addition, the Governance Code requires that the board provides a fair, balanced and understandable assessment of the Company’s position and prospects in its external reporting.
The directors are responsible for maintaining proper accounting records, in accordance with the New Zealand and Australian legislation. They have a general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
Disclosure controls and procedures
The Group maintains disclosure controls and procedures. Management, with the participation of the chief executive and chief financial officer, evaluate the effectiveness of the design and operation of the Group's disclosure controls and procedures as of the end of each financial reporting period.
CASS is exposed to a variety of risks that can have financial, operational and compliance impacts on our business performance, reputation and licence to operate.
The board recognises that creating shareholder returns is the reward for taking and accepting risk. The effective management of risk is therefore critical to supporting the delivery of the Group’s strategic objectives.
The Group’s approach to risk management, underpinned by the CASS Group Risk Policy, is aimed at embedding a risk-aware culture in all decision-making, and a commitment to managing risk in a proactive and effective manner. This includes the early identification and evaluation of risks, the management and mitigation of risks before they materialise, and dealing with them effectively in the event they do materialise. Accountability for risk management is clear throughout the Group and is a key performance area of line managers.
To support risk understanding and management at all levels, the Group Risk function provides the necessary infrastructure to support the management and reporting of material risks within the Group, and escalates key issues through the management team and ultimately to the board where appropriate. Group Risk also supports the Risk Management Committee (an executive management committee chaired by the chief executive) in its review of risk.
The process for identifying, evaluating and managing the material business risks is designed to manage, rather than eliminate, risk and where appropriate accept risk to generate returns. Certain risks, for example natural disasters, cannot be managed using internal controls. Such major risks are transferred to third parties in the international insurance markets, to the extent considered appropriate or possible.