Risk management is a principle we take seriously at Dangote Cement. It is considered pivotal to the achievement of our corporate goals.
We have taken a more holistic view of risk management, so that we have an enterprise-wide view of risk management that goes beyond the management of one single risk.
Appropriate guidelines, principles and procedures have been applied across the Group for the implementation of systematic and effective risk management that is integrates with daily business activities.
As a result, some operating risks are managed at departmental or Company level whilst others requiring specific competences, economies of scale or combined efforts are managed at Group level.
This integrated approach which encompasses all the Group’s activities and adds value to its growth whilst protecting shareholders assets, delivers the high quality of Enterprise Risk Management capability required for multinational organization as Dangote Cement.
Consequently, the tenets of our risk philosophy is guided by the following risk management principles:
All employees are responsible for the management of risk;
1. The Group’s defined Risk Appetite governs the level and type of risk it takes.
2. The risk/reward balance is considered for all risk taken.
3. Risk must be continuously monitored and managed.
The investment and resource allocation made in risk management aims to achieve the following:
At the core of the business model and strategy for growth and sustainability is the need for a strong risk culture in the organization. As such, risk management is considered the responsibility of all executives, management and employees.
The grooming of all stakeholders to have the desired risk culture is being achieved through continuous awareness sessions and deployment of initiatives which support understanding, trust and openness.
This approach ensures rigorous, analytical, independent, and objective risk-taking and decision making that is consistent across the Group.
The expected behaviours of all employees remain:
Dangote Cement manages its risk using a hybrid approach where ownership for risks identified and controls implemented belong to stakeholders at the departmental, country or Group levels.
The ultimate responsibility for effective and efficient risk management organisation-wide resides with its Board of Directors, and this responsibility is delegated and cascaded in a manner that ensures full ownership by process owners of respective business activities at the strategic, tactical and operational levels of the organisation.
Risk is a shared responsibility between the business owners and risk teams with the business operating as a “first line of defence”.
Our risk appetite is a reflection of the maximum level of risk that we are prepared to accept in order to achieve our business objectives. It has been defined and approved by the Board to ensure that risk is proactively managed at a desired level across the organization.
Dangote Cement’s governing Risk Appetite Statements are given below:
For more details on how we manage risk at Dangote Cement please view our online Annual Report.