Risk Management Policy

Seven Network Limited (Seven) is committed to maintaining and improving its risk management capability in order to protect and enhance shareholder value.

The Risk Management Policy (Policy) is intended to demonstrate that Seven understands and manages risk and seeks to ensure there is a consistency to the methods used in assessing, monitoring and communicating risks throughout Seven and that risk management efforts are aligned with Seven’s strategic and business objectives. It also outlines Seven’s requirements for assessing, monitoring and treating risks and will assist in understanding the impact of uncertainties inherent in business decisions. An important objective of the Policy is to promote a balanced approach to risk that optimises risk and return and to ensure that the Seven Network Board of Directors (Board) knows in advance the risks of the business.

The Board ultimately determines the level of risk that is acceptable, based on information provided by management and within general guidelines. The Board considers that effective risk management is a fundamental part of good management practice and is committed to maintaining sound risk management systems to safeguard shareholders' investment, other stakeholders’ interests and Seven's assets, and to prevent breaches in applicable laws or regulation. The Board is responsible for approving this risk policy, reviewing the effectiveness of the risk management process and confirming Seven’s risk appetite.

The Risk and Compliance Committee (R&CC) has been constituted with the function of assisting the Board to ensure that its corporate governance and oversight responsibilities are fulfilled in relation to risk management and compliance with applicable laws or regulation.

The activities of the R&CC are governed by its charter, which incorporates requirements for the membership and attendance of the committee, the frequency of its meetings and its duties and responsibilities. The charter also sets out both the information and reporting that the committee requires, and the nature of the committee’s reporting on its meetings to the Board.

The Risk Management Function is responsible for coordinating the assessment and reporting of risks across the Network’s operations however is not responsible for managing risk per se, but rather to facilitate and enable the management of risk by executive and business management within Seven’s operations.

The Executive and Management Team of each of the Operating Divisions have the responsibility for the management of the risks within their respective Divisions. These Executive and Management Teams will determine the risks of each of their Divisions and will report to and make recommendations to the Risk and Compliance Committee through the Risk Management Function. It is essential that management treat risk management as an integral part of managing the business, not as a “bolt-on” activity for compliance with corporate policy.

The Independent Assurance process will be undertaken by the Head of Internal Audit who will provide assurance to the Risk and Compliance Committee and the Board regarding the effectiveness of the Seven Group’s risk management, governance and control frameworks. Reporting of such assurance activities will be provided to both the R&CC and the Audit Committee, as appropriate.

The objective of the Independent Assurance process is to assist all levels of Management, the Audit Committee, the R&CC and the Board in the effective discharge of their responsibilities relating to risk management and internal control by providing them with appraisals, recommendations and other relevant information concerning the activities of the Seven Group and by promoting effective control at reasonable cost. It is not the intention that Independent Assurance be responsible for the management of the risks of the Seven Group, nor set risk management policies or procedures.