Internal Control & Risk Management

Internal Control Report 2016

Board of Directors’ report on internal control 2016 (PDF)


Risks and Sensitivity Analysis 2016 (PDF)


Internal Control

The Board is responsible for the Company’s organisation and the administration of the Company’s activities, which includes internal control. Internal control in this context regards those measures taken by Black Earth Farming Limited’s (“Black Earth Farming” or the “Company”) Board of Directors, management and other personnel, to ensure that bookkeeping and the Company’s economic condition in general are controlled and reported upon in a reliable fashion and in compliance with relevant legislation, applicable accounting standards and requirements related to the Company’s market listing. Black Earth Farming has appointed an Audit Committee, consisting of two members of the Board, charged with the special responsibility to review and discuss internal and external audit and control matters.

The system of internal control is normally described in terms of five different areas, which form part of the internationally recognised framework as introduced in 1992 by The Committee of Sponsoring Organizations in the Treadway Commission (COSO). These areas, described below, are control environment, risk assessment, control activities, information and communication and monitoring.

The system of internal control is described in full in the annual internal control report.

Risks and Sensitivity Analysis

Black Earth Farming is exposed to a number of different risks as a land owner and crop producer. In addition, the company faces challenges specific to its geographical area and business model. Risks can be divided into three main categories: operational, market and financial.

Risks and Sensitivity Analysis in the 2016 Annual Report