3.7.2Design and Effectiveness of the Internal Risk Management and Control System
The identification, assessment and management of risk are Management’s responsibility and are carried out with the support of dedicated Risk Management resources integrated into the Company’s main business pillars. Under the leadership of the Group Risk and Compliance Director (GRCD), the business risk and compliance officers bring the necessary skills in monitoring, challenging and advising the business on identifying and properly managing risks associated with businesses operations and core processes.
The Risk Assurance Committee (RAC), chaired by the SBM Offshore’s risk management, control framework and the Risk Appetite Statement. At least once every year, the Risk framework’s effectiveness is assessed and discussed with the Supervisory Board.reviews the most significant risks faced by the Company and the relevant control measures. The meets regularly and includes the group directors of all assurance functions, such as , Quality assurance, Finance and Risk and Compliance as well as Internal Audit, representing the third line of defense. The ensures an integrated risk management approach across the assurance functions.The primary duty of the Risk Management function is to ensure that risk factors are properly identified, evaluated and managed in order for the Company to achieve its strategic goals and objectives. The Risk Management function periodically assesses the effectiveness of
Every quarter a risk report is drawn up by the Risk Management function that contains information on the most significant risks and incidents. These reports are discussed with the Management Board, the Audit and Finance Committee and the entire Supervisory Board, whereby the Risk Appetite Statement is taken into account. The reports are built on information from the Company’s risk registers maintained by the Company business pillars, interviews with key stakeholders and information from the Company’s Integrity Line. Reported risks and incidents seldom come as a surprise to Management as themonitors those on a daily basis and severe and urgent matters are brought to the attention of the Group Governance and Compliance Officer and the full Management Board immediately if the situation so warrants.
SBM Offshore applied various measures, amongst which:
Strengthening risk management by:
- Further expanding the integrated Risk Management and Compliance function to ensure cross-Company consistency.
- The delivery of an integrated risk report from the to the Management Board on a quarterly basis.
- The Company’s Risk Appetite Statement was reviewed and updated during 2018 in agreement with the Management Board and Supervisory Board.
- Continue to enhance the quality and practical impact of the risk and control framework via increased efficiency of risk and control reporting.
- Continue to strengthen risk culture and associated behaviors via communication campaigns and training.