Steamships risk appetite is observed as moderately conservative and has identified its material business risks and actively manages those risks. All material business risks that arise in the course of the Group’s activities have clearly defined management ownership and accountability for reporting to the Board.
The Board is responsible for reviewing the Group’s policies on risk oversight and management. In doing so, the Board satisfies itself that management has developed and implemented a sound system of risk management and internal control.
The Group is committed to the management of risks throughout its operations to protect its employees, the environment, Group assets, earnings and reputation. Certain risks occur in the normal course of the Group's business and include foreign exchange and interest rate risks.
The Group Risk Management program utilises a risk management tool and database to assist in monitoring and enforcement of compliance with the Group’s risk management procedures and policies. The Group also uses other risk management techniques, including insurance, to reduce the financial impact of any uncontrollable or catastrophic losses.
Steamships’ management reports regularly to the Board on the effectiveness of its risk management systems and performance in managing material business risks. Steamships is incorporated in Papua New Guinea and is not generally subject to the Australian Corporations Act, hence the Board does not require the Managing Director and the Finance Director to provide a declaration that is consistent with section 295A of the Australian Corporations Act 2001.