Risk Management Policy

Purpose

Talent2 is committed to management of risk throughout its operations. It considers risk recognition and management to be integral to its ability to:

• Create and maintain shareholder value
• Successfully execute strategies
• Achieve best practice

The Talent2 risk management policy guides the Audit and Risk Committee and Board in their identification, assessment, monitoring and management of business, market, operational, financial and reputational risk.

Accountabilities

Management Management:

• ensures that major risks are identified, assessed and managed
• informs the Audit and Risk Committee of significant business risks
• confirms to the Audit and Risk Committee that risk mitigation strategies and controls are operating properly

Audit and Risk Committee The Audit and Risk Committee:

• implements the risk management policy
• evaluates internal processes for identifying, assessing, monitoring and managing key risk areas
• details financial and non-financial risk profiles
• informs the Board that: - Talent2 has effectively implemented the risk management system - Management has confirmed that risk mitigation strategies and controls are operating properly

The Board

• The Board reviews and monitors the risk management policy, strategies and processes.

Risk Oversight

Risk Profile

• Talent2 generates its risk profile on the basis of reviews of each of its core businesses.
• The Talent2 risk profile describes the material financial and non-financial risks facing the company.
• Talent2 reviews and updates its risk profile annually.

Risk Management

To effectively manage risk, Talent2:

• identifies and assesses financial and non-financial risks in terms of potential impact and likelihood of occurrence
• ranks risks according to likely impact
• determines acceptability of each risk
• agrees on steps to eliminate, reduce or manage each material risk
• assigns responsibilities for the management of each material risk
• presents results of risk management assessments to the Board annually and updates them whenever necessary.

Elements of risk management policy

Elements of the Talent2 risk management policy include:

• Oversight of financial affairs by the Audit and Risk Committee
• Annual planning and budgeting
• Regular performance evaluation and reporting
• Regular reporting to Board and management by each of the three business units
• Procedures for compliance with regulatory requirements

Evaluation