RY MAN HEALT HCARE
Statement of corporate governance (continued)
PRINCIPLE 6 – RISK MANAGEMENT
“Directors should have a sound understanding of the material risks faced by the issuer and how to manage them. The board should regularly verify that the issuer has appropriate processes that identify and manage potential and material risks.” Management of risk and internal controls
The board is responsible for overseeing the company’s system of internal controls to manage key risks and have overall responsibility for managing risk. The company maintains a group risk register to identify and manage risk. Specific people and safety, and clinical risk registers are separately maintained given the significance of these areas to the business. The senior executive team is responsible for maintaining the risk registers. Ryman operates an extensive internal accreditation programme that addresses issues such as service delivery, health, safety and wellbeing, and administration. Internal audits are undertaken regularly. The results of these audits and critical indicators are regularly reported to the board. Through the AFRC, the board considers the recommendations and advice of external auditors and ensures that those recommendations are investigated and, where considered necessary, appropriate action is taken. Through the board committees, health, safety and wellbeing is discussed regularly at board, senior executive team, construction team and operational team meetings. Regular reporting of key metrics is prepared to assist these teams in managing health, safety and wellbeing risks. Ryman has a group tax charter that sets out the group tax strategy of Ryman and its subsidiaries. The tax charter along with the tax risk management policy and other operational tax policies form part of the group tax governance framework. Ryman business activities include the construction and operation of retirement villages. These activities are subject to the impact of climate change. The board has acknowledged that climate change is a risk to Ryman activities and has accepted responsibility for managing and assessing climate-related risks. In response to the recognition of climate change as a risk to the operations of Ryman and in response to its legal obligations as an NZX issuer, Ryman has developed a roadmap to support the implementation of climate risk-related processes across governance, strategy, risk management, targets and metrics. The processes identified are consistent with the climate-related disclosure (CRD) recommendations articulated by the XRB. Through consultation with external and internal stakeholders, Ryman has identified key risks and the impact of these risks. These risks and Ryman’s response are detailed in the materiality matrix contained in this annual report.
PRINCIPLE 7 – AUDITORS
“The board should ensure the quality and independence of the external audit process.” External auditor
The AFRC makes recommendations to the board on the appointment of the external auditor as set out in its terms of reference. The committee also monitors the independence and effectiveness of the external auditor and reviews and approves any non-audit services performed by the external auditor. 172