Risk Management

The Board acknowledges its overall responsibility for ALAFCO’s system of internal controls and Risk Management, while the role of executive management is to implement Board approved policies on the same.

Executive Management has implemented internal control and risk management systems designed to facilitate effective and efficient operations of ALAFCO. These systems are aimed at enabling ALAFCO to respond appropriately to significant risks that may arise during the course of its business activities.

It should be noted that the risk management and internal control systems are designed to manage, rather than eliminate, the risks that ALAFCO faces and can only provide reasonable, and not absolute, assurance against material misstatement or loss.

The Board is responsible for the risk management and internal control frameworks of ALAFCO. Executive Management is responsible for identifying risks and implementing appropriate mitigation and controls within their business.

An independent Risk Management and Compliance Department (RCD) reports directly to the Board Audit and Risk Committee and has unrestricted access to the Chairman of the Committee. RCD is responsible for designing and reviewing the process of risk management within ALAFCO.