## Risk and Compliance Committee (continued) 

Management carries out risk specific management activities in six broad families: 

 Strategic Risks  – the risks associated with determining the direction of the business 

 Production Risks  – the risks associated with producing the volume and quality of cattle, beef and crops 

 Financial Risks  – the risks associated with the volatility in commodity prices, availability of funding and counterparty credit 

 Commercial and Asset Continuity Risks  – the risks associated with on-going business operations 

 Legal and Compliance Risks  – the risks associated with breaches of the law and regulations 

 People and Culture Risks  – the risks associated with the employment of staff 

To assist stakeholders in understanding the nature of the risks faced by the Company, the Board has prepared a list of key risks, taken from within the risk families identified above, as part of this Principle 7 disclosure. This list is not exhaustive, and will be subject to change based on underlying market events. The key risks are: 

 Workplace Health And Safety 

 Representation & Reporting 

 Accreditations, Industry Codes, Licences and Food Safety 

 Animal Welfare 

 Environmental 

 Reputation & Brand 

 Market Development and Access 

The Board has a number of mechanisms in place to ensure that Management’s objectives and activities are aligned with the risks identified by the Board. These include the following: 

  Board approval of a strategic plan, which encompasses the Company’s vision, mission and strategy statements, designed to meet stakeholders’ needs and manage business risk. 

 Implementation of Board approved operating plans and budgets and Board monitoring of progress against these budgets. 

The Board approved Risk Management Framework includes the following elements: 

 The Board approved Risk Management Policy (published on the Company’s website); 

  The consolidated Enterprise Risk Register, detailing key strategic, operational, financial, commercial and asset continuity, legal and compliance and people and culture risk factors; 

 The Risk and Compliance Committee; and 

 An internally managed Quality Management System including a detailed set of policies and procedures for Company activities. 

The Chair of the Risk and Compliance Committee liaises with the Chair of the Audit Committee on those matters where both Committees have common responsibilities which include risk management, compliance and internal control. The Chair of the Audit Committee has a standing invitation to attend each Risk and Compliance Committee meeting. Currently the Chair of the Audit Committee, Mr S. Black, is also a member of the Risk & Compliance Committee. 

## CEO and CFO Certification 

In accordance with section 295A of the Corporations Act, the Managing Director/CEO and CFO have provided a written statement to the Board that: 

  Their view provided on the Company’s financial report is founded on a sound system of risk management and internal compliance and control which implements the financial policies adopted by the Board. 

 The Company’s risk management and internal compliance and control system is operating effectively in all material respects. 

The Board agrees with the views of the ASX on this matter and notes that due to its nature, internal control assurance from the Managing Director/ CEO and CFO can only be reasonable rather than absolute. This is due to such factors as the need for judgment, the use of testing on a sample basis, the inherent limitations in internal control and because much of the evidence available is persuasive rather than conclusive and therefore is not, and cannot be, designed to detect all weaknesses in control procedures. 

In response to this, internal control questions are required to be completed by the key management personnel of all significant business units, including finance managers, in support of these written statements. 

