accenture.com<\/a>.<\/em><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\nCompliance monitoring<\/h3>\n
The Group is developing a comprehensive regulatory compliance framework to map the legislation across each geography. This will further mitigate the risk of failing to meet regulatory and compulsory standards.<\/p>\n
Famous Brands monitors its POPIA compliance and has leveraged the internal audit assurance process to identify gaps and improvement opportunities. The Group also reviewed the information laws in various countries and updated the governance process to ensure regulatory risks are appropriately identified and managed.<\/p>\n
Famous Brands monitors developments regarding the Extended Producer Responsibility regulations that came into law in South Africa in May 2021. Work has been completed to ensure Famous Brands is recognised by the relevant producer responsibility organisations. The producer responsibility organisations are still aligning with the regulator on processes to ensure effective implementation of the regulation. <\/p>\n
Cyber security enhancements<\/h3>\n
Each year we conduct a penetration test and\/or a breach attack simulation, a security exercise where a cyber security expert finds and exploits vulnerabilities in our IT environment. In addition, we conducted a gap analysis with an external service provider to benchmark the Group\u2019s security environment against IT security frameworks from the National Institute of Standard and Technology, Centre of Internet Security and ISO270001. The results from this analysis fed into the development of the three-year IT security road map.<\/p>\n
Insurance review<\/h3>\n
In 2022, Famous Brands reviewed its insurance cover across the Group. Based on the gap analysis and recent black swan events, we are still optimising our insurance model to ensure it is still fit for purpose and will address uninsurable and difficult to insure risks. This work will be concluded in 2023.<\/p>\n
Business continuity planning<\/h3>\n
Famous Brands continued its work to improve business continuity planning to close gaps at specific manufacturing and logistics sites. For example, this included further improvements in KwaZulu-Natal after the July 2021 unrest.<\/p>\n
Going forward<\/h3>\n
Our focus in the coming year is to further entrench our business and insurance risk management capabilities throughout the Group. This includes operationalising risk management in each operating entity, including Company-owned restaurants, implementing the technology enterprise architecture and structure strategy which includes the three-year IT security plan and completing the regulatory compliance framework, which covers the regulatory requirement of the countries where we operate.<\/p>\n
Key risks<\/h2>\n
Our top 10 key risks are defined below, along with their potential impact, our mitigating actions and future opportunities they present. Both internal and external risks are identified.<\/p>\n
Risks are ranked according to the severity of their potential impact on the Group. Impact categories are determined based on tolerance levels across four areas: finance, reputation, consumer and employee factors. Likelihood is based on the probability of occurrence. <\/p>\n
![\"\"](\"https:\/\/famousbrands.co.za\/iar2022\/images\/p51.jpg\")
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Residual risk heat map<\/h3>\n\n
![\"\"](\"https:\/\/famousbrands.co.za\/iar2022\/images\/p52-1.png\")
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Residual risk assessment<\/h4>\n
The residual risk and the extent of mitigation are illustrated in the graph below.<\/p>\n
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![\"\"](\"https:\/\/famousbrands.co.za\/iar2022\/images\/p52-2.png\")
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