GreenSavanna Hemp Industries — Risk Analysis and Mitigation

GreenSavanna Hemp Industries recognises that any commercial venture operates within a complex risk environment. The Company has identified the following key risk categories and has developed corresponding mitigation strategies to manage exposure within acceptable levels.

GreenSavanna Hemp Industries (Pty) Ltd Business PlanSection 14 › Risk Analysis and Mitigation

Section 14 · Business Plan

Risk Analysis and Mitigation

GreenSavanna Hemp Industries recognises that any commercial venture operates within a complex risk environment. The Company has identified the following key risk categories and has developed corresponding mitigation strategies to manage exposure within acceptable levels.

GreenSavanna Hemp Industries recognises that any commercial venture operates within a complex risk environment. The Company has identified the following key risk categories and has developed corresponding mitigation strategies to manage exposure within acceptable levels.

Risk Category Description Probability Impact Mitigation Strategy
Regulatory Risk Changes to hemp cultivation permits, THC limits, or licensing requirements Medium High Proactive engagement with DALRRD; retain specialist regulatory counsel; diversify across jurisdictions
Crop / Agricultural Risk Crop disease, pest infestation, or weather-related crop failure Medium High Crop insurance; diversified planting schedule; integrated pest management; irrigation infrastructure
Market / Price Risk Volatility in hemp commodity prices; demand fluctuations Medium Medium Diversified product portfolio; off-take agreements; export market development
Climate Risk Drought, flooding, or extreme weather events Low–Medium High Irrigation infrastructure; climate-adapted cultivars; crop insurance
Operational Risk Equipment failure, supply chain disruption, labour disputes Medium Medium Preventive maintenance programme; diversified supplier base; fair labour practices
Financial Risk Interest rate increases, currency fluctuation, liquidity constraints Medium Medium Fixed-rate borrowing where possible; forex hedging on export revenues; conservative cash management
Compliance Risk Non-compliance with THC limits, product standards, or environmental regulations Low High Quality control systems; regular testing; compliance officer appointment; third-party audits
Reputational Risk Negative public perception of hemp/cannabis association Low Medium Clear brand differentiation; industry education; community engagement; transparent communication

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