b'RISK MANAGEMENTAs an integral element of Staatsolies transition tobest-in-class standards in order to work effectively with international stakeholders such as financial institutions and IOCs, the company has instituted a thorough Enterprise Risk Management (ERM) assessment, facilitated by a consulting firm to improve the current Enterprise Risk Management framework. The assessment resulted in the identification of the key risks and yielded a foundation for periodic risk reporting, monitoring and risk appetite setting.Staatsolies key risks are those which can have the most significant impact on the achievement of its approved strategic initiatives and were categorized according to whether the risks were strategic, compliance, financial or operational in nature. Throughout the year, management regularly reviews these key risks and associated risk responses and implements further suitable mitigating and corrective actions. Within the control framework, risk management and internal control over financial reporting is key. A multi-year major improvement project is ongoing that will result in rigorous controls to mitigate risks associated with generating the information that appears in our financial statements.56 STAATSOLIE 2021 ANNUAL REPORT'