THE PERFORMANCE
MATERIAL RISKS | continued
DIVERSIFICATION AND AGRICULTURAL
INDUSTRY RISK
Senwes is exposed to limited growth opportunities, espe-
cially in the local agricultural sector. The business and indus-
try could achieve a level of maturity that could increase the
difficulties of volume and profit growth.
Further upscaling, through consolidation
and new market expansion, to ensure
critical mass, as well as synergies which
will position the business for growth and
long-term survival;
Leveraging innovation and technological
advancement in the agricultural sector;
Increased investment in efficiencies or in-
creased participation in the areas of the
value chain, which are yielding good long-
term results, such as developing new,
Senwes continues to work on a rolling 10-year strategy. The
focus of the group’s strategy is diversification, horizontal in-
tegration and local consolidation, internal integration of the
customer, reorganisation of business models, unlocking
value synergies, increased investment in efficiencies in the
value chain and externalisation.
The de-risking of the current business models and geo-
graphical exposures, therefore, remain a high priority.
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10
REGULATION AND
COMPLIANCE RISK
Opportunities
Mitigation and control
UNIQUE COMPETITOR RISK
8
more competitive and efficient solutions
for the handling of soft commodities and
more extensive participation in the opti-
misation of logistics networks; and
Externalisation or diversification into new
markets or lower risk jurisdictions.
The risk describes the wide range of legislation that the
group must comply with. The material acts are, inter alia, the
Competition Act, FICA, Financial Markets Act, FAIS, NCA,
CPA and OHSA.
Opportunities
Continuously drive improvement in
the group’s Compliance Coverage
Plan; and
Strive for a culture of transparency
and compliance which promotes good
corporate governance.
Mitigation and control
The board accepts total responsibility for compliance with
all applicable legislation and regulatory requirements. This
is reported via the internal Compliance Committee and then
to the Risk Committee, as well as the Audit Committee.
Focused attention is being afforded to compliance aspects
throughout the company. The board officially adopted the
Group Compliance Coverage Plan that involves a group-
Strategic focus areas triggered
Reorganisation of business models.
For more info on the group strategy see p. 40
wide approach to compliance.
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SYSTEMS RISK
Strategic focus areas triggered
The group operates in a competitive environment. Inno-
vation and market penetration strategies, throughout the
agricultural value chain on the part of our competitors (local
and internationally), could have an adverse effect on market
share and the group’s results.
Diversification, horizontal integration and
consolidation;
Internal integration of the customer;
Reorganisation of business models;
Unlocking value synergies;
Increased investment in efficiencies in
the value chain; and
Externalisation.
Mitigation and control
Senwes is exposed to competitor entrance, like all busines
ses, and innovative strategies have been designed and capital
investments made, in order to retain and grow market share.
For more info on the group strategy see p. 40
Opportunities
Mitigation and control
An IT-strategy and management committee is in place and
formal change, project and integration management are ap-
plied. Furthermore, extensive business and IT-disaster reco
very processes have already been established. Continuous
focus is placed on IT-governance and improving the maturity
of systems.
Opportunities
Leverage technological advance-
ments and innovation to ensure sys-
tem sustainability and to enable more
effective archiving, capacity, data inte
grity, relevance, integration and adap
tability; and
Unlocks the value of “big data”,
through internal system development
in order to service the client in a more
effective and cost efficient way.
Strategic focus areas triggered
Leveraging innovation and technological
advancement in the agricultural sector to
maintain a competitive advantage;
Increased value chain participation - espe-
cially in the areas of the value chain, which
have been yielding good long-term results
that will help in mitigating unique competitor
risk;
Externalisation or diversification into new
markets or lower risk jurisdictions;
Optimisation and/or expansion of product
and/or service offerings - disruptive product
and/or service solutions; and
Reorganisation of business models.
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The company relies heavily on technology and innovative
system developments. The main risks relate to archiving, ca-
pacity, data integrity, relevance, integration and adaptability.
Strategic focus areas triggered
Diversification, horizontal integration
and consolidation;
Internal integration of the customer;
Reorganisation of business models;
Unlocking value synergies;
Increased investment in efficiencies
in the value chain; and
Externalisation.
Reorganisation of business models;
and
Unlocking value synergies.
For more info on the group strategy see p. 40
For more info on the group strategy see p. 40
SENWES INTEGRATED REPORT 2019
SENWES INTEGRATED REPORT 2019
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