Management of risk is a primary objective of Marathon Resources Ltd (“the Company”) in all its business activities. The Company is committed to ensuring that its culture, processes and structures facilitate realisation of the Company’s business objectives, including potential opportunities, while its system of risk oversight, management and internal control are appropriate.
The key areas of risk identified by the Board are:
- Operational risk
- Indigenous people
- HSE&C
- Environment
- Financial reporting
The Company has adopted a Risk Management Policy, consistent with Australia/New Zealand Standard 4360, which clearly defines responsibilities for managing risk under the Company’s risk management process. Material risks of the Company’s business, including operational, financial, legal and compliance risks related to business transactions, are required to be regularly identified, managed, monitored and reported. Methods for treating and mitigating risks include transferring, reducing, accepting or passing on risks following assessment using a variety of methods.
Primary responsibility for managing risk rests with the Company’s management, while the Board, through its Audit & Risk Committee, retains ultimate responsibility for risk management.
One of the cornerstones of the Company’s risk management approach is a well defined system of delegated authorities with respect to the commitment of capital and an investment approval process which brings rigour to the selection, assessment and approval of investment risks. Matters such as legal, accounting, tax and general risk assessment issues are considered in each case. The Company’s most senior Executives and the Board are involved in major decisions.
Material risks are reported to the Board through the Audit & Risk Committee and the Board has worked with management to implement policies and processes to address particular identified risks. The Board participates in regular updates (as required) from management on material aspects of the business of the Company, including material risks. In the case of any particular major risk materialising, relevant members of senior management and the Managing Director/CEO/General Manager are responsible for ensuring the Board is fully informed of, and for discussing with the Board, the steps taken to address that risk.
