The effectiveness and efficiency of the control environment at Strate is fundamental to the successful operation of the CSD on a day-to-day basis. Built on the effective integration of a number of interrelated components, there is a governance structure within which Strate operates, where the ‘tone at the top’ is set by the Board of Directors, a number of purpose-driven internal and external committees, a dedicated senior management team and the regulatory oversight of the Financial Services Board.
The internal control framework forms part of the overarching risk management framework that has, as one of its core imperatives, the identification, evaluation and treatment of risks (both internal and external) that may prevent the depository from achieving its corporate objectives.
A comprehensive structure of control activities permeates all levels of the organisation, directed and supported by clearly defined policies and procedures that are designed to guide staff in the execution of their duties. Continuous monitoring of these control activities helps ensure that weaknesses and/or deficiencies are identified timeously, that these are escalated appropriately and that corrective action is taken without delay.
Supporting this structure is a communication strategy that is designed to provide decision-makers with the right information, at the right time to make the right decisions.
Managing risk is an integral part of generating sustainable shareholder and stakeholder value. By identifying and understanding the types of risks that may arise, the sources of these risks can be determined and assessed. Following which, effective mechanisms should be developed to monitor and manage these risks.