RAND WATER ANNUAL REPORT 2023

KING IV PRINCIPLE

APPLY AND EXPLAIN

13. The governing

The culture of compliance is part of the organisation, and its structure, particularly because it exists through relevant statutory provisions under the Water Services Act, Act No.108 of 1997 and PFMA. Consequently, the potential risk of non-compliance to applicable laws, non-binding rules, codes and standards may have an adverse effect on the overall standing of the organisation. The Board has adopted a decentralised model of compliance risk management. This denotes that compliance risk management accountability is assumed by each business unit, and regular engagements that are undertaken through regulatory and compliance services ensure compliance throughout the organisation. In doing so, the Board has also catered for the adoption of a multi-phase risk management process that identifies, assesses, manages, monitors and reports risks so as to engender sufficient compliance mechanisms. The Board understands the role that human capital plays throughout the organisation. Accordingly, it assumes responsibility for the governance of remuneration by setting direction for how remuneration should be approached and addressed on an organisation-wide basis. The aforementioned is achieved through a two-pronged policy that: • Attracts and retains human capital by having remuneration policies that are competitive in the market. • Motivates and rewards human capital by making provision for incentives and performance bonuses. Refer to “How we Manage our Risks” section of the IAR (page 31).

body should govern compliance with applicable laws and adopted, non-binding rules, codes and standards in a way that supports the organisation being ethical and a good corporate citizen.

14. The governing body should ensure that the organisation remunerates fairly, responsibly, and transparently so as to promote the achievement of strategic objectives

and positive outcomes in the short, medium and long term.

Refer to “How Rand Water is Governed” section of the IAR (page 34).

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