Risk Management
Enterprise Risk Management (“ERM”) activities are critical to the organization’s senior management, business units, Board of Directors and our investors primarily because it fosters a culture of risk awareness and because it just makes good business sense.
We continue to embed ERM into the running of our business and we have implemented a framework that promotes risk awareness in the areas of strategy, infrastructure, environment and process. This framework helps our organization achieve the desired ERM goals of our framework that include creating a strong ERM culture that enables the identification and management of risks across each risk area, fosters risk optimization and enables maximization of our risk adjusted returns.
We have also created a set of guiding principles that help to deliver the desired benefits from our ERM framework. These principles are built around a foundation of governance, understanding and accountability to manage risk, realize and maximize opportunities and meet regulatory, rating agency and other stakeholder expectations and demands.
Our ERM framework clearly defines the key roles and responsibilities, governance structure, risk profiles, tolerances, risk registers, good policies and procedures that are all built around strong and effective communications:
- Business units are responsible for risk taking;
- Independent risk and compliance functions responsible for setting standards, providing tools and objectively monitoring risks;
- Internal Audit function that has responsibility for the validation of the accuracy and completeness of risks and controls and an opinion on whether the risk management system is designed appropriately and operating effectively; and
- Board and senior management are responsible for overseeing effective and efficient ERM. This oversight includes both quarterly Risk Management Forums and Risk Committees at the business unit level.
We have established an integrated risk management framework that also fosters and drives
