40 Corporate  Governance Meetings Principle 7: Recognise and manage risk Risk Management Policies Roles and responsibilities Asset operating risk Regulatory risk Board Compliance risk Climate change  Financial risks Committee Notices of meeting sent to AGL’s  shareholders comply with the “Guidelines  for notices of meeting” issued by the ASX in  August 2007. Shareholders are invited to  submit questions before the meeting and,  at the meeting, the Chairman attempts to  answer as many of these as is practical.  Approximately 100 shareholders took the  opportunity to submit questions in advance  of the 2010 Annual General Meeting. The Chairman also encourages  shareholders at the meeting to ask  questions and make comments about AGL’s  operations and the performance of the  Board and senior management. The  Chairman may respond directly to  questions or, at his discretion, may refer a  question to another Director, the CEO or a  member of the Executive Team. New Directors or Directors seeking re– election are given the opportunity to  address the meeting and to answer  questions from shareholders. AGL has adopted the practice of  conducting a poll on each motion being  considered at the meeting. Shareholders in  attendance at the meeting are also given  the opportunity to vote by a show of hands  before the poll is conducted. The external auditor attends AGL’s Annual  General Meeting. Shareholders may submit  written questions to the auditor to be  considered at the meeting in relation to the  conduct of the audit and the preparation  and content of the Independent Audit  Report by providing the questions to AGL  at least five business days before the day of  the meeting. No questions were sent to the  auditor in advance of the 2010 Annual  General Meeting. Shareholders are also  given a reasonable opportunity at the  meeting to ask the auditor questions  relevant to the conduct of the audit, the  Independent Audit Report, the accounting  policies adopted by AGL and the  independence of the auditor. Recommendation 7.1 –  Companies should  establish risk management policies for the  oversight of material business risks Recommendation 7.2 –  Companies should  establish risk management and internal  control systems to manage material  business risk and require management to  report to the Board on the eff ectiveness of  these systems and the effectiveness of the  material business risks AGL faces a wide variety of risks due to the  nature of its operations and the regions in  which it operates. These risks include: Making sure that AGL can source adequate  volumes of gas and electricity on  acceptable terms to meet customer needs.  This includes making sure that we have  effective electricity hedging policies and  procedures in place. Supply risk Making sure that AGL’s assets, particularly  electricity generation assets, operate  reliably when required. The prices AGL can charge its customers  for gas and electricity are regulated in most  of the markets in which AGL operates. AGL  faces the risk that the regulated prices will  not increase at the same rate as the costs  of acquiring energy to meet  customer needs. AGL operates in a heavily regulated  industry. As an energy company, government  policies on carbon emissions and renewable  energy will affect AGL and its customers. Making sure that AGL has the right capital  structure to provide the financial capacity  to implement its strategy. AGL systematically examines all  operational and financial areas of the  Company to identify its major risk  exposures using an enterprise–wide  risk program based on ISO31000, the  international standard on risk management.  This program is supported by AGL’s Risk  Management Policy. AGL has a number of other policies that  directly or indirectly serve to reduce and/or  manage risk. These include, but are not  limited to: The Board is responsible for reviewing and  approving changes to the Risk  Management Policy and for satisfying itself  that AGL has a sound system of risk  management and internal control that is  operating effectively. The Committee  assists the Board in carrying out these  responsibilities. Details of the operation of  the Committee are included in the  commentary on Principle 4. The Committee oversees the detailed  analysis of the effectiveness of the system  of risk management and internal control.  The Committee receives an annual  presentation of AGL’s material business  risks and the controls in place to mitigate  the consequences of those risks. The  Committee also receives regular  presentations from management  throughout the year on specific risk topics. The Committee has responsibility for  approving the internal audit plan submitted  annually by Group Audit. The internal audit  plan is based on an assessment of AGL’s  main risk exposures. The Committee also  reviews and approves the annual external  audit plan. Executive Team The CEO has primary responsibility for  designing, implementing and reporting on  AGL’s risk management framework. The  Executive Team collectively has  responsibility for promoting a risk  management culture throughout AGL,  including consistent application of the Risk  Management Policy across AGL. > Compliance Policy; > Market Disclosure Policy; > Code of Conduct; > Delegations of Authority Manual; > Health, Safety and Environment Policy; > Wholesale Energy Risk Management  Policy; > Treasury Policy; and > Privacy Policy. The Risk Management Policy, and the  other policies listed above, describe the  roles and responsibilities for managing  risk. This includes, as appropriate, details  of responsibilities allocated to the Board  or to the Audit and Risk Management  Committee (Committee), Executives,  the business units and AGL’s Group  Audit function.