Fresnillo plc is a major silver and gold mining company in Mexico. Our business strategy and risk management framework take into consideration the market context of the precious metals industry in which we compete, as well as the country environment of Mexico where the majority of our people and operations are located.
The Group has in place internal controls and risk management systems in relation to the Group's financial reporting system process and the Group's process for preparing consolidated accounts. These systems include policies and procedures to ensure that the adequate accounting records are maintained and transactions are recorded accurately and fairly to permit the preparation of financial statements in accordance with IFRS. The Board has overall responsibility for the Group's system of internal control, which includes risk management, and reviewing it effectiveness. The system of internal control is designed to identify, evaluate and manage significant risks associated with the achievement of the Group's objectives. Because of the limitation's inherent in any system of internal control, the Company's system is designed to meet its particular needs and the risks which it is exposed. It is designed to manage risk rather than eliminate risk altogether. Consequently it can only provide reasonable and not absolute assurance against material misstatement or loss.
The Board has delegated to the Audit Committee its responsibility for reviewing the effectiveness of these controls. The Audit Committee reviews the system of internal control on an annual basis. The day-to-day responsibility for managing risk and the maintenance of the Group's system of internal control is collectively assumed by the Executive Committee. The Executive Committee is supported in this task by the Internal Audit Committee.
The process for identifying, evaluating and managing the significant risks faced by the Group has been established in accordance with the Turnball Guidance. The Audit Committee reviews the Group's major risks and uncertainties prior to publication of the interim and annual financial statements. Based on the risk categories set out in the risk matrix, the Audit Committee, through the Internal Audit Department, has sought letters of representation from the Executive Committee and the executive management on the Group's system of internal control.
The Board is committed to the continued development of its internal control regime with a view to achieving and maintaining best practice levels of risk management and internal control for international mining companies listed on the London Stock Exchange.