Constance Hotels, Resorts and Golf | Annual Report 2023

98

Corporate Governance

Constance Hotels Services Limited

Annual Report 2023

99

Corporate Governance

Constance Hotels Services Limited

Annual Report 2023

Risk Management and Internal Controls

Risk Management and Internal Controls

6. RISK MANAGEMENT AND INTERNAL CONTROLS (continued)

6. RISK MANAGEMENT AND INTERNAL CONTROLS (continued)

6.1 Risk Management (continued)

6.1 Risk Management (continued)

Risk Profile

Principal Risks and Mitigation Initiatives

Risks facing the Company are classified by type and subsequently grouped as Strategic, Financial, Operational, Compliance or Hazard, in accordance with the National Code of Corporate Governance for Mauritius (2016). The following charts provide an overview of the Company’s risk profile as a 31 December 2023, based on the average residual risk values.

The Company has implemented various policies and mitigation initiatives to effectively counter the principal risks to which it is exposed to, as elaborated in this Corporate Governance Report and in the following tables. The Company also contributes towards a Director and Officer Liabilities insurance cover.

Principal Risks by Risk Group and Capital Impacted

Residual Risk Exposure, 31 December 2023

RISK

RISK GROUP CAPITAL IMPACTED RISK TREND (2023 VS 2022)

RESIDUAL RISK EXPOSURE BY RISK GROUP Based on average residual risk scores

RISK CRITICALITY Based on residual risk scores

Geographical Concentration

Strategic

0.1%

Industry and Market

Strategic

4.7

Political, Economic and Social

Strategic

4.0

4.0

34.4%

3.5

3.4

Reputation

Strategic

65.5%

Social Responsibility and Sustainability

Strategic

Strategic

Compliance Financial

Hazard Operational

Financial Management

Financial

Risk Score 17-≤25

Very High

Medium High Low

10-<17 4-<10

High

Cybersecurity and Information Governance

Operational

Medium

1-<4

Low

Health and Security

Operational

Talent

Operational

RESIDUAL RISK EXPOSURE BY RISK CATEGORY Based on average residual risk scores

Legal, Regulatory and Ethical Compliance

Compliance

Uncontrollable Events (Natural, Environmental, Geopolitical and Human Perils)

5.8

Hazard

4.3

4.2

4.1

4.0

3.9

3.8

3.7

3.6

3.4

3.1

3.0

Legend Capital Impacted:

Financial

Human

Risk Trend:

Decrease

Increase

Geograpical Concentration

Industry & Markets

Reputation

Social Responsibility & Sustainability

Financial Management

Cybersecurity and Information Governance

Health & Security

Talent

Legal Regulatory & Ethical Compliance

Uncontrollable - Political, Economic & Social

Uncontrollable - Pandemic/ Epidemics

Uncontrollable - Natural, Environmental, Geopolitical & Human

Intellectual

Social & Natural

Unchanged