Risk management is fundamental to the Group’s conduct and includes executing action plans around and within Ophir’s activities in order to protect business interests from risks.
Ophir works in often challenging environments that present risks to its activities, operational sites and assets. Managing these risks is critical to address uncertainty, protect Ophir and create value.
The Board of Ophir has overall accountability for determining the type and level of risk it is prepared to take, whilst also ensuring that sound risk management and internal control systems are in place across the Group.
Reporting within the Group is arranged so that risks are escalated through various internal management and Board committees and, when appropriately material, to the Board. These principal risks are regularly discussed at Board meetings with a focus on the effectiveness of the controls and the associated risk action plans.
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:
- establishing the risk context with reference to Ophir’s objectives.
- conducting a risk assessment through:
- understanding the causes, impacts, likelihood and potential impacts on Ophir’s objectives;
- assessing if the risks can be reduced to a tolerable level; and
- determining appropriate controls to deal with the risk, allocating responsibility for managing the risk controls and executing the activities based on plans and procedures
- regularly communicating and consulting on the risks through established management control procedures
- recurrent monitoring and reviewing of risks