As an integral part of its business and management practices, Tutt Bryant Group Limited and its subsidiaries are committed to managing risk to ensure good corporate governance to realise successful continuity of operations, protect earnings and growth into the future.

Risk management involves achieving an appropriate balance between realising opportunities while minimising the exposure to losses. The process not only applies to the minimisation and management of losses, but also covers potential gains.

To protect the Group's shareholders and the integrity of the Company, the Managing Director and Board are committed to proactively manage any adverse risks. This will be done by assessing the potential harm in Group activities, and developing control systems and measures to mitigate them.

During 2007, the senior Management of the Group will implement a system whereby it can monitor, minimise and regularly review all key exposures that may adversely affect or place the Company at risk and maximise upon those circumstances that will impact upon its growth and success. Changes may be required in the way that things are done including an enhanced understanding of the scope and responsibilities of risk management within the Group. All employees and managers are responsible for achieving these objectives within their own areas of operation. The Managing Director, and those designated, will be responsible for monitoring the progress of the objectives across the Group and reporting quarterly to the Board's Audit & Risk Committee. The performance of staff in controlling risk will be one of the factors taken into consideration when assessing individual's performance.

All business units and divisions will be assisted in the development of their Risk Management Plans to identify the specific hazards to which they are exposed. The Plans will include mitigation strategies together with timelines. The Plans will be developed within the context of the Group’s Risk Management Framework.

To ensure effective compliance, the Managing Director and the Executive Team will review the ongoing performance against the objectives every quarter.

The Managing Director and the Board are committed to ensuring that the management of key risks supports sound corporate governance and best practice for the Company.