The Chairman of the Annual General Meeting will allow a reasonable opportunity for shareholders to ask questions about the  Company’s performance and operations and also ask questions of the external auditor concerning the conduct of the audit,  preparation and content of the Independent Auditor’s Report. Recommendation 7.1 of the revised Corporate Governance Council Principles provides that companies should establish policies  for the oversight and management of material business risks and disclose a summary of those policies. The Board of Directors  has overall responsibility for monitoring compliance and oversight of these policies along with ensuring that they are efficient and effective. Currently, as part of the Group’s strategy to implement an integrated framework of control, the Board of Directors continually  identifies and monitors the key business and financial risks that could jeopardise the Group achieving its objectives. The Board of  Directors has and continues to develop appropriate controls to effectively manage those risks. A summary of the Company’s  policies for the oversight and management of material business risks follows: In compliance with Recommendation 7.3, the Board of Directors encourages senior management level accountability for the  Company’s Annual Report by requiring the Executive Chairman and Chief Financial Officer to state in writing to the Board of  Directors that: Recommendation 7.2 of the revised Corporate Governance Council Principles provides that the Board of Directors should require  management to design and implement the risk management and internal control system to manage the Company’s material  business risks and report to it on whether those risks are being managed effectively. Throughout the financial year, the Company  has reviewed and where required improved risk management and internal compliance and control systems following reports from  senior management. The Company will continue to review and improve its risk management systems in conjunction with senior  management over the coming financial period. Karoon Gas Australia Ltd  Annual Report 2011 91 • the Annual Report is compiled in accordance with best practice and is properly monitored using the Audit Committee and the  external auditors to ensure a sound system of risk management and control. • the Company’s Annual Report presents a true and fair view, in all material respects, of the Company’s financial condition and  operational results and is in accordance with relevant Australian Accounting Standards; and • operational reporting is submitted to the Board of Directors at every Board meeting to ensure decisions are made in an efficient  and effective manner. Reports include reviews of current assets, potential acquisitions and general operational issues and/or  opportunities. • the Company protects its employees through the adoption of a Health, Safety and Environment Policy and travel insurance for  periods where employees are travelling on business, along with membership to emergency assistance and management for  an employee overseas; and • the Company offsets the risk of operational failures using appropriate insurance, with covers for third party liability, well control,  day-to-day office and business insurance and operator’s extra expense; • financial controls are set in place by the use of an authority matrix, general purchasing principles and approvals procedures. All  expenditure is closely monitored by the Audit Committee on behalf of the Board of Directors and reported on a quarterly basis.  The Chairman of the Audit Committee also works closely with the Company’s finance personnel prior to Board meetings in  order to understand financial risks and report such risks to the Board of Directors. Management accounts are prepared regularly  for the Board of Directors to ensure information congruence between management and the Board of Directors; Risk Assessment and Management Management Accountability