ENTERPRISE-WIDE RISK MANAGEMENT FRAMEWORK
As a global engineering and contracting group, risk is an inherent feature of our business. Our enterprise-wide risk management framework guides our mitigation against threats to our business and the efficient and proactive pursuit of business opportunities. The Board approves the Group’s risk appetite and risk tolerance, and monitors risk exposures, which are regularly reviewed and updated.
Clear governance structures assist the Board with its risk management responsibilities, overseeing the management of risks and opportunities across the Group, and ensuring that they receive appropriate attention. Key among these is the audit & risk committee, whose mandate includes periodic reviews, guidance, objectively challenging management and independent verification to ensure that risks and internal controls are effectively managed.
The Group’s integrated assurance framework identifies, assesses, monitors and reports our complex risks and opportunities, including those related to climate change, energy, water and waste. The framework’s three pillars are risk management, regulatory compliance and independent assurance (internal and external audits).
Risks are managed through appropriate governance structures, organisational leadership, and planning and effective management, which ensure that the right capacities, controls, systems and processes are in place. Risks are assessed quarterly and considered three to six years into the future.
The risk forum is a cross-functional management platform that aligns our approach to risk and ensures a common understanding of the risk areas that threaten the Group as a whole.
Additional information: refer to our risk management report, available in the downloads section below.
Sustainable development continues to feature prominently on the global agenda. Intensifying activism, public scrutiny and demands from stakeholders for greater transparency and visible action on environment, social and governance (ESG) issues, requires that we improve our sustainability practices and align them with stakeholder expectations. The Board receives regular updates from management on ESG risks, opportunities and performance.
- Additional information: governance of sustainability
- Additional information:our ESG risks and opportunities, available in the downloads section below.
RESPONSIBLE PROJECT DELIVERY
Prudent risk management is of crucial importance given the varying complexity, scope and size of our projects. Risk management starts from when we first engage in a potential business opportunity and continues throughout the project life cycle to close out.
All potential bids are captured on the Group’s opportunity management system. The system rates projects against the Board-approved risk tolerance framework, assesses and prices risk, and determines the levels of authority required to approve a tender for submission. All tender proposals consider ESG risks and opportunities.
When we win a tender, the bid team hands over to the implementation team, with there often being executives or senior managers common to both teams to ensure there is good knowledge transfer. The implementation team receives training on contract requirements, and then prepares a readiness presentation for executives in the business to ensure there have been no misunderstandings on how the project is to be delivered.
The operating business conducts a monthly performance review, which covers health, safety, environmental, financial and schedule performance, amongst others. Residual exposures relating to final accounts, claims, bonds, warranties, patent and latent defects, are formally closed, and lessons learned captured for future application.
These processes enable us to identify variances with tender expectations and identify the actual and potential impacts of our services so that they can be effectively managed in partnership with our business partners and clients. In this way, we reduce our liability, ensure compliance with applicable legislation and secure the sustainability of our business through longstanding client relationships.
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