Risk Management Framework

The RMF is the totality of systems, structures, policies, processes, and people within the Trustee’s business operations that identify, assess, manage, mitigate, and monitor all internal and external sources of inherent risk that could have a material impact on its business operations or the interests of beneficiaries (material risks). The RMF was reviewed during the reporting period.

The RMF serves as a management tool to enable the Trustee to develop and implement different strategies, policies, and controls to appropriately manage different types of material risks. By giving effect to the RMF, the Trustee ensures that each material risk to the Trustee’s business operations is being prudently managed, having regard to the size, business mix and complexity of its operations. The RMF determines Nasfund’s risk appetite and
risk tolerance which is expressed in the Risk Appetite Statement.

While business units are responsible for their own risk management, the risk management function has ultimate oversight throughout the company to ensure visibility of risks and risk management activities covering all risks from strategic and operational to financial.

The responsibility for overall risk management is vested with the Board. However, the Management and staff at all levels have a responsibility and a part to play in the risk management process.