The Board has a fiscal and fiduciary responsibility to adhere to all of the laws and guidelines required to ensure good corporate governance at South Ocean Holdings, and is responsible for the implementation and monitoring of governance practices throughout the Group. In an environment that is increasingly regulated, the Board bears the ultimate responsibility for constantly monitoring compliance with internationally accepted governance practices, as well as for ensuring that a robust corporate governance framework is in place to provide for effective implementation.

The members of the Board and Senior Managers consistently strive to entrench an overall culture of good governance and good corporate citizenship throughout the Group. The purpose of this is to ensure that all decisions are taken in an ethical, fair and transparent manner within the context of an ethical framework that supports accountability to the law and all of the Group’s stakeholders.

South Ocean Holdings is committed to proactive enterprise risk management, which it applies as a business discipline to create value, secure assets, protect stakeholder interests, and promote long-term sustainability. Risk management policy is therefore founded on the ethical values of responsibility, accountability, fairness, and transparency, and is designed to facilitate uniform application.

The Board has committed the Group to a process of risk management that is aligned to the principles of good corporate governance as set out in King IV and the Companies Act. This is defined as a structured, systematic and comprehensive process designed to:

- identify potential risks that may affect the Group;

- prioritise and effectively manage these risks within clearly defined risk appetite parameters; and

- provide reasonable assurance regarding the achievement of organisational objectives.

Although the Board is ultimately accountable for enterprise risk management, the Audit and Risk Management Committee assists with oversight. All employees are also required to be fully conversant with risk management policy and processes, as well as to maintain the integrity of these policies and processes throughout the organisation. Risk management processes are implemented within the context of the approved risk management framework and the structures that have been put into place to allow for the Group’s unique needs, circumstances, and operating activities.

The identification, assessment, mitigation, and monitoring of risk in all areas of the business is an ongoing and evolving process, and is an integral part of daily decision-making. Quarterly risk reports provide the management information necessary to conduct a regular and balanced assessment of the risks the Group faces as well as of the internal processes that are in place to manage them.