Strategic & Operational Risks
Strategic and operational risks are considered at least annually by all operating divisions as part of the annual strategic planning, forecasting
and budgeting process. Each facility is responsible for the development and maintenance of a risk management plan identifying material
risks, developing strategies for dealing with those risks and developing and testing controls.
During FY2017, the Global RMC and the Board reviewed the Company’s Strategic and Operational Risk Profile. Material strategic and
operational risks were identified and assessed and the effectiveness of relevant risk mitigation strategies were scrutinised. The Global RMC
was satisfied that appropriate controls were in place to address these risks. The Strategic and Operational Risk Profile will continue to be
The Company’s risk management framework
The Company has in place a Risk Management Framework which is consistent with the definition of an ‘appropriate framework’ in Standard
AS/NZS ISO 31000:2009 Principles and Guidelines for Risk Management.
The Risk Management Framework:
• provides a Group-wide approach which outlines the structure and policies applicable to the proactive identification, assessment,
management, reporting and oversight of risks, particularly material business risks;
• encompasses all areas of risk with the capacity to adversely affect the business of the Group, such as strategic, financial, patient safety,
workplace health and safety, the operating environment and legal risks;
• emphasises a collaborative approach by all stakeholders to the identification of risks, the importance of clear communication of initiatives
and strategies to manage identified risk and reinforcement of compliance with such initiatives as an integral part of corporate culture; and
• provides guidance on risk treatment and prioritisation.
Our material business risks, including economic risks, together with our approach to managing those risks, are outlined in the Operating
and Financial Review section of our 2017 Annual Report. The Company does not consider that it has any material environmental or social
sustainability risks (as those terms are defined in the ASX Recommendations).
Global Risk Management Committee
The Global RMC helps drive a positive culture towards risk management that promotes open disclosure and quality improvement in risk
management activities in these key areas.
The Global RMC Charter provides that the objectives of the Committee is to oversee and drive improvement in risk management practices in:
• patient safety;
• workplace health and safety; and
• the Company’s operating environment (e.g. IT/cybersecurity, building and facilities and regulatory compliance).
There are currently ten (10) members on the Global RMC comprising a mix of Non-Executive Directors (four), executive Directors (two), senior
executives/management personnel (three) and the Strategic Medical Advisor. Given the nature of the risks inherent in owning hospitals on an
international scale, the Board has decided that it is in the Company’s best interests for the Global RMC to include a strong senior executive /
management presence to ensure that the Global RMC has the necessary technical and industry knowledge available to it at all times. Despite
the Global RMC not being comprised of a majority of independent Directors, the Board considers that it operates efficiently and effectively in
bringing transparent, focused and professional judgement in overseeing the Company’s risk management framework.
The current membership, independence of, and details of Global RMC meetings and attendance by each Director Global RMC member are
set out earlier in this Corporate Governance Statement. Further, the relevant experience and qualifications of the Director members is set out
in the Board of Directors section of this Annual Report.
The Global RMC reviews the Risk Management Framework at least annually. Following its FY2017 review, the Global RMC is satisfied that the
Risk Management Framework continues to be sound.
The Board has an integrated risk management reporting framework that is befitting of a transnational organisation.
Risk management structures have been established in respect of each of the Company’s Australian, France, UK, Malaysian and Indonesian
businesses. Risk management subcommittees have also been established in Ramsay Australia, Ramsay Générale de Santé and Ramsay UK.
Risks relating to the Company’s Asian joint-venture are reported to the board of Ramsay Sime Darby Health Care Sdn Bhd, as part of the joint
venture arrangements with Sime Darby.
Each country/region reports to the Global RMC in writing at least on a quarterly basis and in a consistent format. These reports cover the
management of risks and analysis of trends relating to (among other things) clinical governance, workplace health and safety, cybersecurity
and other material enterprise risks.
Further, within each country/region, sub-committees have been established with specialised responsibilities: e.g., in Australia
sub-committees have been established to oversee the management of risk in relation to clinical governance risk and workplace health and
safety and culture risk, as well as Ramsay Pharmacy, the Company’s retail pharmacy franchise business. These sub-committees, which report
to the relevant country/region body are an important part of the Company’s risk management and governance strategy as they each oversee
and report on their respective area of specialisation and responsibility.
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