Integrated governance and risk framework

Strong and effective risk management is central to how we run our business and supports the delivery of our strategic objectives.

It also ensures we remain focused on developing long-term relationships with host governments and safeguarding the communities and the environments we work within, ultimately protecting our business, people and reputation.

Our integrated governance and risk framework demonstrates the key risks associated with each of our strategic priorities and how they could impact our performance. The framework also identifies the Executive Directors that have overall responsibility for each risk and the internal committees that are responsible for the ongoing management and monitoring of our risk exposure.

Risk Management

The Board is collectively responsible for risk management and each Executive Director is responsible for designated strategic risks. In early 2014, a new Executive Committee was formed that assists the Executive Directors in running the business.

It comprises the Executive Directors and 10 senior regional and functional business leaders. The Vice Presidents and Business Unit leadership teams are responsible for managing day-to-day operations and the safe delivery of the Group's business plan.

Corporate functions are responsible for managing designated Group-wide corporate risks and assurance of Business Unit activities and operational and financial performance.

Board of directors

  • 12 members
  • Five Executive Directors
  • Seven non-executive Directors
  • Four Board Committees

Executive Committee

Includes the Executive Directors and 10 regional business and corporate function leaders

Regional & Business Units

Corporate functions

Performance indicator

  • Long-term total shareholder return

Key risks to our performance

  • Strategy focus to meet shareholder expectations

Risk owner

Aidan Heavey
Chief Executive Officer

Risk assurance

  • Board and the Executive Directors

Related information

Execute selective high-impact E&A programmes.

Performance indicator

  • Resource growth
  • Exploration success ratio
  • Portfolio replenishment
  • Finding costs per boe

Key risks to our performance

  • Sustained exploration failure

Risk owner

Angus McCoss
Exploration Director

Risk assurance

  • Executive Committee
  • Global Exploration Leadership Team

Related information

Deliver all major projects and production operations increasing cash flow and commercial reserves, while ensuring safe people, procedures and operations and minimising environmental impacts.

Performance indicator

  • Yearly operations targets
  • EHS scorecard
  • Timely delivery of projects

Key risks to our performance

  • Key operational or development failure
  • EHS failure or security incident

Risk owner

Paul McDade
Chief Operating Officer

Risk assurance

  • Executive Committee
  • Board EHS Committee
  • Development & Operations Leadership Team
  • EHS Strategy Group

Related information

Manage financial and business assets to enhance our portfolio, replenish upside and support funding needs.

Performance indicator

  • Operating cash flow
  • Debt profile and capacity
  • Gearing and cash operating costs
  • Capital expenditure and cost management targets
  • Realised commodity prices
  • Funding of projects

Key risks to our performance

  • Insufficient liquidity, inappropriate financial strategy
  • Cost and capital discipline
  • Oil and gas price volatility

Risk owner

Ian Springett
Chief Financial Officer

Risk assurance

  • Executive Committee
  • Financial Risk Committee

Related information

Deliver substantial returns to shareholders.

Performance indicator

  • Long-term Total Shareholder Return (TSR )

Key risks to our performance

  • Strategy fails to meet shareholder expectations
  • Information and cyber security

Risk owner

Executive Directors

Angus McCoss
Exploration Director

Risk assurance

  • Board
  • Executive Committee
  • Information Systems Leadership

Related information

Achieve strong governance across all Tullow activities and continue to build trust and reputation with all stakeholders.

Performance indicator

  • Code of Conduct training and certification
  • Compliance issues and whistle blowing calls and investigations

Key risks to our performance

  • Bribery and corruption
  • Governance and legal risk

Risk owner

Graham Martin
Executive Director & Company Secretary

Risk assurance

  • Board
  • Compliance Committee
  • Executive Committee

Related information

Build a strong unified team with excellent commercial, technical and financial skills and entrepreneurial flair.

Performance indicator

  • Staff turnover
  • Recruitment for key roles
  • Localisation

Key risks to our performance

  • Loss of key staff and succession planning

Risk owner

Graham Martin
Executive Director & Company Secretary

Risk assurance

  • Executive Committee

Related information

Create sustainable, transparent and tangible benefits from the presence of oil in host countries.

Performance indicator

  • Local content
  • Social performance

Key risks to our performance

  • Failure to manage social and socio-economic impacts
  • Political risk
  • Supply chain failure

Risk owner

Paul McDade
Chief Operating Officer

Graham Martin
Executive Director & Company Secretary

Risk assurance

  • Executive Committee

Related information