Ophir works in often challenging, complex and uncertain environments that present a potential risk to our objectives; to counter this we maintain robust and effective risk management as an integral part of our decision-making.
During 2016, we continued to strengthen how the Group manages risk that could impact our people, the environment, our business and our reputation. Ophir continuously strives to embed risk management principles in its processes and procedures.
The Board has overall accountability for determining Ophir’s risk appetite as well as ensuring that sound risk management and internal control systems are in place across the Group. In deciding Ophir’s risk appetite, the Board has conducted an assessment of the risk process, considered the risks that could potentially threaten the Group’s strategic objectives and has reviewed the associated controls.
Ophir’s risk management system runs across the Group from the top down; risks are reviewed through various internal management and Board Committees, dependent on their level of impact and likelihood of occurrence. This reporting process uses Ophir’s risk matrix and when risks are considered to be appropriately material they are examined at Board committees, or by the Board.
The Board has assigned risk oversight to the Audit Committee, the Corporate Responsibility Committee and the Technical Advisory Committee. These Committees report their findings to the Board on a regular basis.
The key elements of Ophir’s risk management are to:
- establish the risk context with reference to Ophir’s strategic business objectives.
- conducting a risk assessment through:
- understanding the causes, impacts and likelihood of risk events
- assessing if the risks can be reduced to a tolerable level and are consequently within the acceptable constraints of the Group’s risk appetite. This process informs us of where the risk event lies on Ophir’s risk matrix
- determining appropriate controls to deal with the risk, allocating responsibility for managing risk controls and executing activities based on plans and procedures
- regularly communicate and consult on the risks through established management control procedures
- recurrent monitoring and reviewing of risks
The principal risks identified within the Group are summarised in the PDF available to download below.
Internally, the Group monitors and mitigates a more comprehensive list of risks through the Group’s risk register, which continues to be a vital component of our risk management process. However, the risks listed in the table are those that are currently considered by the Group to be the most significant due to their impact and likelihood.