Principle 7: Recognise and Manage Risk
Risk Management and Internal Compliance and Control
The Board determines the Company's 'risk profile' and is responsible for overseeing and approving risk management strategy and policies, internal compliance and internal control. The Company's process of risk management and internal compliance and control includes:
- continuously identifying and measuring risks that might impact upon the achievement of the Company's goals and objectives, and monitoring the environment for emerging factors and trends that affect these risks
- formulating risk management strategies to manage identified risks, and designing and implementing appropriate risk management policies and internal controls
- monitoring the performance, and continuously improving the effectiveness, of risk management systems and internal compliance and controls.
The risk management program addresses risks under the following categories:
- business risks inherent to the shipbuilding industry
- operating risks associated with sales, design and production
- financial risks
- specific vessel risks
The Board oversees an annual assessment of the effectiveness of risk management and internal compliance and control.
The responsibility for undertaking and assessing risk management and internal control effectiveness is delegated to management. Management is required by the Board to assess risk management and associated internal compliance and control procedures and report back on the efficiency and effectiveness of risk management.