text: **Principle 7: Recognise and Manage Risk**
  
  **7.1 Risk Assessment and Management**
  Sundance has established a Risk Management Policy whereby the primary purpose of the policy is to ensure that: 
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  Appropriate systems are in place to identify, to the extent that is reasonably practical, all material risks that the 
  Company faces in conducting its business; 
  The financial impact of those risks is understood and appropriate controls are in place to limit exposures to them; 
  Appropriate responsibilities are delegated to control the risks; and 
  Any material changes to the Company’s risk profile are disclosed in accordance with the Company’s continuous Market 
  Disclosure Policy. 
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  The Audit and Risk Management Committee is responsible for approving and monitoring the overall financial and operational 
  business risk profile of the Company, and reporting its findings to the full Board. In addition, by the nature of the upstream oil 
  and gas business this topic is intrinsically covered during each Board meeting. The Board requires the executives to design and 
  implement the risk management and internal control system to manage the Company, and to report to the Board. 
  
  The Board has received assurance from the Managing Director and Chief Financial Officer that the declaration provided in 
  accordance with section 295A of the*Corporations Act 2001*is founded on a sound system of risk management and internal 
  control which is operating effectively. 