Companies involved in the mining industry are exposed to risks, referred to as corporate risks, as part of the business process. Directors and management should be aware of these risks and make appropriate business decisions to address each risk. If business risks are not addressed on a timely basis the consequences are likely to be serious and will adversely impact the ultimate success of the business._x000D_
The key corporate risks are: Poor cash flow and treasury management._x000D_
Incompetent or unmotivated staff._x000D_
Poor product quality._x000D_
Accounting systems that do not provide meaningful and timely information._x000D_
Computer system deficiencies._x000D_
Ineffective credit screening._x000D_
Assets not adequately protected._x000D_
New ventures undertaken that are either inappropriate or not adequately researched._x000D_
Exposures to corporate risk should be dealt with by Directors and management by systematically identifying major risk areas and implementing appropriate internal and management controls to deal with such risk areas. Proper management controls and procedures include the setting of overall corporate objectives and policy, monitoring adherence to such policy, establishing early warning systems to highlight problem areas and maintaining security over assets.