Kalahari Express Logistics — Risk Management Framework
The Company has adopted an enterprise risk management (ERM) framework aligned with ISO 31000 principles. Risks are assessed on a likelihood and impact matrix, with mitigation strategies assigned to specific risk owners within the executive team.
Section 10 · Business Plan
Risk Management Framework
The Company has adopted an enterprise risk management (ERM) framework aligned with ISO 31000 principles. Risks are assessed on a likelihood and impact matrix, with mitigation strategies assigned to specific risk owners within the executive team.
The Company has adopted an enterprise risk management (ERM) framework aligned with ISO 31000 principles. Risks are assessed on a likelihood and impact matrix, with mitigation strategies assigned to specific risk owners within the executive team.
10.1 Risk Register
| Risk Category | Likelihood | Impact | Mitigation Strategy | Risk Owner |
|---|---|---|---|---|
| Border delays and customs bottlenecks | High | High | Electronic pre-clearance; dedicated customs staff at Vioolsdrif; diversified border post usage (Noordoewer) | Head: Namibia Ops |
| Fuel price volatility | High | Medium | Fuel hedging contracts; route optimisation to reduce km; fuel surcharge mechanism in client contracts | CFO |
| Regulatory and legislative changes | Medium | High | Dedicated compliance function; legal retainer with cross-border trade specialist; C-BRTA relationship management | CEO / Legal |
| Fleet downtime and mechanical failure | Medium | Medium | Preventive maintenance programme; 2 backup vehicles; service level agreements with OEM-approved workshops | COO |
| Key person dependency | Low | High | Key person insurance; succession planning; documented SOPs for all critical functions | CEO / Board |
| Load shedding and power disruption | High | Medium | Diesel generators at hub; solar PV installation (Phase 2); UPS for IT systems; cloud-based platform | COO |
| Cybersecurity and data breach | Medium | High | POPIA compliance; regular penetration testing; data encryption; cyber insurance; staff awareness training | CTO / CFO |
| Exchange rate fluctuation (ZAR/USD) | High | Low | NAD/ZAR parity mitigates corridor risk; USD exposure hedged via forward contracts for imported parts | CFO |
10.2 Insurance Programme
The Company will maintain a comprehensive insurance programme including goods-in-transit insurance covering full cargo value, commercial vehicle fleet insurance with R&I endorsement, public liability insurance of ZAR 20 million per incident, professional indemnity insurance, key person insurance for the CEO and COO, business interruption insurance, and cyber liability insurance. The total annual insurance premium is budgeted at ZAR 1.2 million in Year 1, escalating at 8–10% per annum.
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