INTEGRATED ANNUAL REPORT FOR MULTICHOICE SOUTH AFRICA HOLDINGS (PTY) LTD AND PHUTHUMA NATHI INVESTMENTS (RF) LTD

UNDERSTANDING RISKS AND OPPORTUNITIES Our approach MultiChoice South Africa is exposed to risks that may impact on the successful implementation of our strategy. Identification of risks and opportunities is an integral part of our strategic process, and we consider both the potential negative and positive impacts on our business. Risk profile The risk profile is the result of the board’s appetite for risk and the ability of management to deliver performance within aligned tolerance variables. Such variables are monitored and reported on during the operational and strategic reporting cycles. Results from the enterprise-wide risk management process are integrated into the business’s strategic, operational, compliance monitoring and reporting activities, and the management of risks forms part of ongoing management responsibilities. During FY2019, an external assessment of the adequacy of enterprise-wide risk management processes was performed and results indicated varying degrees of maturity. The recommendations following this process have been turned into action plans for implementation, which are being monitored. An effectiveness review is planned for FY2020. Risk management processes align to our strategic planning and budgeting cycles, and annual risk management plans are compiled and updated as required. Risk specialists are embedded in key business areas and are responsible for the implementation of plans and activities. Performance against approved risk management plans and results of activities and processes are monitored by the group’s centralised governance forum. The risk committee has oversight on risk and opportunity management on behalf of the board. It evaluates key risks and opportunities identified through assessments that consider the environment in which we operate as included in the risk register and heatmap. It then reviews disclosures as recommended by King IV. The risk register is reviewed biannually, in November and March, supported by heatmaps demonstrating the relative positioning and movement of key risks. The risk management plan and budget are reviewed annually by the risk committee. CEO & CFO RISK PROCESS RISK SPECIALITIES w Ultimate accountability for risk management w Delegate risk management responsibility to CEO and CFO w Risk committee of the board has oversight on risk and opportunity management w Oversee implementation of risk management framework w Drive consistent risk management processes w Perform process reviews and risk assessments w Evaluate market information w Recommend controls to be put in place to mitigate risk w Monitor effectiveness of controls w Alignment of risk management processes with business strategy w Embedded in key business areas w Implementation of risk plans and activities w Monitor effectiveness of risk plans BOARD CEO AND I I IST 25 MultiChoice South Africa Holdings Proprietary Limited integrated annual report 2019 LEADERSHIP AND STRATEGY