Risk management
Protecting Our Business
The oil and gas industry is inherently high risk and as a consequence the management and mitigation of risk is a dynamic and vital business process. It helps us protect our business, our people and our reputation. By doing so we protect the communities and the environment, and enhance our relationships with host governments.
Risk management is central to how we run our business and is fundamental to how we create value and deliver substantial returns to shareholders. It is an integral part of our business model and is a Board level responsibility. Our approach to risk management aims to identify key risks as early as possible and to either reduce or remove those risks. If that is not possible, then we respond when a risk crystallises to reduce that risk to an acceptable level.
Executive Directors have designated responsibility for each key risk. The Group’s new Regional and Business Unit organisation structure has embedded risk management more deeply in the running of business.
Each Region is led by a Regional Business Manager (RBM). Each RBM has strategic responsibility and accountability to the Executive team for the successful delivery of the Group’s business plans for their Region. A large part of their remit is identifying, mitigating and reporting on risks and opportunities for risk management and mitigation.
Operational assurance for risk is provided by three cross-functional groups – the Global Exploration Leadership Team (GELT), the Development & Operations Leadership Team, including EHS responsibility, and the Financial Risk Committee. Combined, these three groups provide greater support for aligned and effective risk management across the Group. Day-to-day management of risk is assigned to individual managers and each employee is personally responsible for managing risk within the remit of their role.
