What are the recommendations of recognizing and managing risk in a listed entity to establish a sound risk management framework recommended in Corporate Governance Council of Australia.

The ASX listed entity is required under Listing Rule to include in its annual report a corporate governance statement. The corporate governance statement must disclose the extent to which the entity has followed the recommendations set by the ASX Council during the reporting period. If the entity has not followed a recommendation for any part of the reporting period, its corporate governance statement must (a) separately identify that recommendation and (b) the period during which it was not followed and (c) state its reasons for not following the recommendation and what (if any) alternative governance practices it adopted in lieu of the recommendation during that period. By requiring listed entities to compare their corporate governance practices with the Council's recommendations and, where they do not conform, to disclose that fact and the reasons why, Listing Rule acts to encourage listed entities to adopt the governance practices suggested in the Council's recommendations. Recognise and manage risk A listed entity should establish a sound risk management framework and periodically review the effectiveness of that framework. Recommendations prescribed as under: Recommendation 7.1 The board of a listed entity should: (a) have a committee or committees to oversee risk, each of which: has at least three members, a majority of whom are independent directors; and is chaired by an independent director, and disclose: the charter of the committee; the members of the committee; and as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or (b) if it does not have a risk committee or committees that satisfy (a) above, disclose that fact and the processes it employs for overseeing the entity's risk management framework. Recommendation 7.2 The board or a committee of the board should: (a) review the entity's risk management framework at least annually to satisfy itself that it continues to be sound; and (b) disclose, in relation to each reporting period, whether such a review has taken place. Recommendation 7.3 A listed entity should disclose: (a) if it has an internal audit function, how the function is structured and what role it performs; or (b) if it does not have an internal audit function, that fact and the processes it employs for evaluating and continually improving the effectiveness of its risk management and internal control processes. Recommendation 7.4 A listed entity should disclose whether it has any material exposure to economic, environmental and social sustainability risks and, if it does, how it manages or intends to manage those risks.