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AFRICAN DAWN ANNUAL REPORT 2020

Application of principles in King IV™ continued

Governance Functional Areas

Risk governance

Principle 11: The board should govern risk in a way that supports the company in setting and achieving its strategic objectives.
The board has direct responsibility for the governance of risk and has implemented a proactive approach to managing risks through its system
of effective internal controls. The board is responsible for the approval of the risk profile and financial risk appetite and tolerance levels, ensuring
that risks are managed within these levels.

Management continuously identify, assess, mitigate and manage risks within the existing operating environment. Mitigating controls are put in
place to address these risks.

To support the board in ensuring risk management oversight, the Audit and Risk Committee is responsible for ensuring effective monitoring of
the relevant top risks.

Technology and information governance

Principle 12: The board should govern technology and information in a way that supports the company setting and achieving its
strategic objectives.
The board is ultimately accountable for the governance of information technology management and has delegated this responsibility to the
Audit and Risk Committee.
Assurance is sought to ensure that the information management controls in place are effective and that any risk identified are addressed.

The information management strategy is aligned to Afdawn’s business needs and sustainability objectives. Measures to ensure that compliance
to all relevant laws, information security and the protection of personal information are in place.

Compliance governance

Principle 13: The board should govern compliance with applicable laws and adopted, non-binding rules, codes and standards in a way
that supports the company being ethical and a good corporate citizen.
Afdawn’s policy requires that all associated companies and their directors and employees comply with all applicable laws.
Legal compliance systems and processes are continuously being put in place, to mitigate the risk of non-compliance with the laws in various
jurisdictions in which Afdawn does business.

A library of policies provides the necessary guidance to employees on the acceptable levels of conduct. The policy library is updated on a
continuous basis with policies being amended to reflect the changes in the external environment.

The board has delegated the responsibility for implementing compliance to management.

Afdawn management review the adequacy of controls to ensure full compliance coverage of legal and regulatory responsibilities.

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