The Group’s risk management framework facilitates identification and management of risks and opportunities in a manner that supports value creation. Risk management is an integral part of all decision-making processes and day-today activities.
Murray & Roberts operates in an environment that presents opportunities and risks that can have a financial, operational and reputational impact on the business. Entrusted with the overall responsibility for risk management, the Board sets the direction through policies and frameworks on how these risks and opportunities should be managed.
The Group’s market sector, geographic and project life cycle diversification is instrumental in mitigating some of the risks we face. The shift to broaden market focus over the last three years has become a permanent feature of the Group’s response to cyclicality in natural resources markets.
Appropriate governance structures, including the Board risk committee, executive risk committee, project oversight committee and business platform risk committees, ensure that the appropriate operational and functional systems, procedures, and controls are in place to mitigate risks and harness opportunities in pursuit of the Group’s strategic objectives.
Identifying, quantifying and managing risks and opportunities is a challenging task given the scale and complexity of the Group’s operations. The Group Risk Management Framework promotes a consistent approach to risk management by ensuring that experienced management teams manage and maintain a planned, coordinated and structured approach to identify, assess, address, monitor, communicate and report the Group’s risks and opportunities. The mitigation of those risks most likely to prevent the Group from achieving its strategic objectives, are prioritised.
Risk Management, Regulatory Compliance and Independent Assurance (internal and external audits) are the three pillars of the Group Integrated Assurance Framework, which aims to:
- Align strategy with risk tolerance;
- Improve and streamline decision-making, which improves the Group’s risk profile;
- Promote the strategic and coordinated procurement of a quality order book, which contains a known and planned level of risk and an appropriate level of reward;
- Ensure reasonable commercial terms and conditions are contracted based on a predetermined set of acceptable contracting principles, together with the rational pursuit of commercial entitlement;
- Promote rigorous project reviews, and early responses to projects deviating from planned and tendered expectations;
- Promote continuous improvement through the institutionalisation and application of lessons learnt;
- Reduce operational surprises, improve predictability and build shareholder confidence;
- Build robust organisational risk structures and facilitate timeous interventions, to promote long-term sustainable growth; and
- Promote the efficient and proactive pursuit of opportunities.
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