Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

RISK APPETITE Rand Water remains committed to proactive and adaptive risk management practices that safeguard our assets, stakeholders, and mandate. As we navigate an increasingly uncertain operating environment, our risk management approach will continue to evolve to anticipate new threats, build organisational resilience, and support sustainable, potable water provision for all our customers. THE RAND WATER TOP 10 STRATEGIC RISKS During the 2024/25 financial year, the organisation undertook a comprehensive strategic risk assessment process to identify key strategic and emerging risks threatening its long-term sustainability and service delivery obligations. Through this process, the Top 10 Strategic Risks captured in Figure 2 below, were identified and approved by the Board. These risks were ranked based on their residual risk rating. These risks reflect the complexity of our operating environment, which is influenced by infrastructure pressures, financial constraints, environmental variability, and emerging threats such as cybercrime. Despite the complexities surrounding these risks, notable effort was made to manage the risks during the financial year. Each of the identified strategic risks was assigned to a dedicated risk owner who is a member of the EXCO. The Executives are accountable for leading the development and implementation of documented risk mitigation strategies tailored to their specific risk areas. These strategies are designed to reduce the organisation’s exposure and enhance resilience in both the short- and long-term. The risk mitigation progress, emerging challenges, and key developments were regularly reviewed on a quarterly basis within the organisation’s internal risk governance structures, including the CRC, TMC, EXCO and the Board through its GARC. Risk matters were escalated to and deliberated at Board level, ensuring full oversight, strategic alignment, and resource support where required.

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Rand Water | Integrated Annual Report 2025