The CA&S board is responsible for overseeing the group's risk management process, supported by the Audit and Risk Committee. The committee ensures that the group's risk management process aligns with relevant standards and governance requirements. At an operational level, senior management in each operation is accountable for managing risks in their respective areas, while oversight of risk management is maintained by the relevant executive teams.
Risk management approach
The risk management process includes the annual approval of the group's risk appetite and tolerance levels. The group's risk appetite is defined as the level of risk that CA&S is willing to accept or tolerate in pursuit of value creation and strategic goals. A quantitative measurement is used to assess risk appetite and tolerance, considering the impact and likelihood of risks, as well as existing management actions and controls that mitigate potential threats or capitalise on opportunities. If the residual risk exposure exceeds the defined risk appetite, management mitigates or controls these risks through appropriate measures. If it is unable to mitigate the risk to an acceptable level, the risk is avoided, if possible.
Through our risk management process and governance, each operation is equipped with the necessary information to manage risks effectively, capitalise on opportunities, and take corrective actions that ensure the successful delivery of our business strategy and objectives.
To fulfil its responsibilities, the board delegates specific risk management duties to the Audit and Risk Committee as well as the executive teams. The Audit and Risk Committee's Chairperson keeps the board apprised of the group's risks. CA&S' risk registers undergo bi-annual updates and reviews. Each risk undergoes an evaluation based on its likelihood and impact, both on an inherent (actual impact) and residual (after mitigating action) basis as well as from a threat and opportunity perspective.
Risk management process
Top risks
The table below identifies CA&S' top nine residual risks, comparatively, as well as references where these risks are discussed in more detail.
Note that for this financial year we have not experienced a material year-on-year change in risk rankings. This is due to the fact that we are not presented with significant changes to the impact or likelihood of the identified risks during the period, apart from the impact of the war in the Middle East, which started at the end of February 2026.
| Ranking | YoY change | Residual risk | Residual threat | Risk category | |
| 2025 | 2024 | ||||
| 1 | 1 | Client concentration | High | Operational | |
| 2 | 4 | Impact of political unrest / sanctions / grey-listing / global pandemic / war | High | Strategic | |
| 3 | 2 | Data and information security | High | Operational | |
| 4 | 3 | Credit risk | Medium | Financial | |
| 5 | 5 | Business continuity – safekeeping of assets | Medium | Operational | |
| 6 | 6 | Failure to attract or retain critical skills | Medium | Strategic | |
| 7 | 7 | Economic decline | Medium | Financial | |
| 8 | 8 | Fraud, theft, crime and corruption | Medium | Operational | |
| 9 | 9 | Compliance risk | Low | Operational | |
Risk heatmap
Hover a risk number to see its label. Click to open its detail below.
Risk detail
Click on any risk to expand its full description, mitigation actions and opportunities.
Client concentration
A significant portion of our revenue is generated from a small number of major clients who own leading household brands across our markets. The loss of any of these key clients, or a material reduction in the services provided to them, would have a substantial impact on our financial performance.
Category:
Operational
Control effectiveness:
Medium
Key stakeholders impacted:
Material matters:
Risk Mitigation
- Consistently deliver strong commercial results and exceptional execution to deepen client trust and retention.
- Maintain rigorous service standards and operational excellence across all markets and channels.
- Proactively diversify our client portfolio to reduce dependency on any single client and broaden revenue streams.
Opportunities
- The strength and scale of our major clients create opportunities to expand their brands into new geographies, channels and categories, deepening our partnership value.
- Representing a portfolio of respected, category-leading brand owners enhances our market reputation and enables us to leverage shared capabilities for growth.
Impact of political unrest / sanctions / grey-listing / global pandemic / war
Political instability, regulatory sanctions, grey-listing events or global health crises can disrupt supply chains, restrict movement of goods and people, and impede normal trading activity. Such events have impacted our operations in the past and continue to pose a material risk to business continuity, customer service and financial performance across our markets.
Category:
Strategic
Control effectiveness:
Low
Key stakeholders impacted:
Material matters:
Risk Mitigation
- Maintain resilient business continuity plans, including remote-working capability and decentralised operational support.
- Diversify our service offering, routes to market and supply-chain arrangements to preserve product flow across varying country conditions.
- Strengthen cross-border and multi-market operational capacity to shift volume and activity when specific regions are affected.
- Proactive contingency planning for fuel supply to mitigate the impact of geopolitical tensions on distribution operations.
Opportunities
- Disruption creates opportunities to support clients with innovative, adaptive solutions that strengthen their resilience and deepen our role as a trusted partner during periods of uncertainty.
Data and information security
Loss of data or system connectivity can disrupt critical operational processes, impair service delivery and compromise the reliability of reporting and execution. Such incidents could also erode client trust and damage our reputation, given our growing reliance on integrated digital platforms and real-time data.
Category:
Operational
Control effectiveness:
High
Key stakeholders impacted:
Material matters:
Risk Mitigation
- Maintain daily backups, regular system upgrades and software maintenance.
- Maintain dedicated server rooms and cloud-based backups managed by reputable external service providers.
- Maintain access controls to manage physical and virtual access to the servers.
- Update antivirus software and firewalls regularly.
- Test disaster recovery plans and make them easily available in time of need.
Opportunities
- Strengthen trust and position CA&S as a preferred, secure partner for clients and retailers.
- Unlock deeper data-sharing partnerships, enabling richer insights and higher-value services.
- Build resilient, modern systems that support the growth of digital commerce and analytics-led offerings.
- Differentiate in emerging markets by setting a higher standard for data governance and security.
Credit risk
A default by any major customer on outstanding payments could result in a material financial loss, disrupt cash flow and negatively affect sales performance over the medium term.
Category:
Financial
Control effectiveness:
Medium
Key stakeholders impacted:
Material matters:
Risk Mitigation
- Maintain strong customer relationships supported by regular and transparent communication to identify issues early on.
- Closely monitor country-specific and customer-specific financial conditions to anticipate emerging payment risks.
- Apply disciplined credit management practices, including defined credit limits, ongoing review of buying and payment behaviour, and enforcement of agreed payment terms.
Opportunities
- Our ability to manage debtor collection effectively on behalf of clients strengthens our value proposition, positioning us as a trusted partner that reduces their administrative burden and financial exposure.
Business continuity – safekeeping of assets
Disruption at our facilities due to floods, fire, or a significant technical breakdown may lead to interruptions in deliveries, resulting in lost sales and reduced market share for our clients and customers, as well as damage to stock and equipment.
Category:
Operational
Control effectiveness:
High
Key stakeholders impacted:
Material matters:
Risk Mitigation
- Maintain good security controls and ensure disaster prevention measures are in place.
- Ensure that stock and other content is adequately insured.
- Maintain adequate fire detection and suppression systems.
- Test disaster recovery plans and make them easily available in time of need.
Opportunities
- High standards of warehouse safety controls give current clients peace of mind and will attract new clients.
Failure to attract or retain critical skills
A loss of critical skills would hamper our ability to deliver our strategy and maintain business viability and profitability, through loss of skill, knowledge and client rapport.
Category:
Strategic
Control effectiveness:
High
Key stakeholders impacted:
Material matters:
Risk Mitigation
- Maintain continuity and succession planning by management and the board.
- Maintain attractive incentive schemes and remuneration packages.
- Create a safe and pleasant work environment.
- Be a workplace of choice.
Opportunities
- To be accredited as a Top Employer in SA.
- Exceptional service delivery attracting new clients.
Economic decline
Weakened consumer demand, driven by sluggish economic growth, negatively impacts volumes. Simultaneously, client cost bases could rise at higher-than-inflation rates, impacting profit margins.
Category:
Financial
Control effectiveness:
Medium
Key stakeholders impacted:
Material matters:
Risk Mitigation
- Work closely with clients to identify efficiency improvements, optimise cost structures and enhance service delivery to protect volume and value.
- Broaden and diversify our client portfolio to reduce exposure to any single category or partner.
- Expand our geographic footprint to balance performance across markets with differing economic cycles.
- Diversify our product and service offerings to remain relevant and resilient.
Opportunities
- Broaden our product and category portfolio to capture emerging demand and deepen our role within customers and clients' value chains.
- Leverage our platform to enter high-growth geographies and strengthen our presence in under-served markets.
- Pursue both organic expansion and targeted acquisitions to accelerate scale, enhance capabilities and unlock new revenue streams.
Fraud, theft, crime and corruption
Incidents of fraud, theft, crime or corruption can lead to monetary loss, margin erosion and operational disruption, while exposing employees to potential harm. Such events also carry significant reputational risk, undermining stakeholder confidence and damaging long-term business sustainability and viability.
Category:
Operational
Control effectiveness:
High
Key stakeholders impacted:
Material matters:
Risk Mitigation
- Implement robust security controls, monitoring systems and access protocols across all warehouses and logistics operations.
- Maintain a strong internal audit function to ensure adherence to policies and best practice.
- Operate an independently managed fraud and ethics hotline for confidential reporting.
Opportunities
- A firm stance against fraud and corruption strengthens organisational integrity, enhancing employee confidence and reinforcing investor trust in the group's governance and long-term stability.
Compliance risk
Failure to maintain the highest standards of compliance with regulatory requirements and best practice may result in penalties and/or the loss of reputation.
Category:
Operational
Control effectiveness:
High
Key stakeholders impacted:
Material matters:
Risk Mitigation
- Management continually evaluates and strengthens internal controls to ensure alignment with regulatory requirements and best practice.
- The internal audit function independently assesses compliance and tests the effectiveness of control frameworks.
- An independently managed fraud and ethics hotline supports confidential reporting and the reinforcement of an ethical culture.
Opportunities
- Demonstrating strong compliance and ethical conduct enhances our reputation as a responsible corporate citizen, helping us attract high-quality clients and retain skilled, values-driven employees.