Page 133 - Sigmaroc Annual-Report 2023

Risk
"At a high level the Group’s risk appetite is reviewed annually by the Board which defines and approves the level of risk the Group is willing to accept in pursuit of its strategy, thereby guiding management."
Charles Trigg
Chief Technical Officer
The Company’s on-going identification and assessment of risks including ESG and climate-related risks allows both the Board and management to consult and adapt to ensure efficient and effective mitigation with the Board having overall responsibility.
The Board of Directors, executive committee and senior management teams continually identify and assess risks and opportunities. This ensures each platform can focus on what is important to their jurisdictions as well as ensuring the Group is focusing on overall risks.
Risks are reported and discussed at the executive committee with the CTO having overall responsibility at an executive level. Where high areas of risk are identified, specific committees are set up to monitor and control the risk. The CTO also coordinates with key subject matter experts on Investor Relations, Legal, Safety, Carbon & Energy, Environment and Systems.
Risks are then discussed at the Board level who have overall responsibility with the Audit Committee taking the lead with a close working relationship with the CTO.
Risks identified are assessed based on aspects such as consequence, impact, likelihood, inter dependencies and associated timeframes (short-, medium-, and long-term time horizons) as well as their drivers such as Political, Operational, Economic and Technical.
When assessing the potential size and scope of risks and opportunities, input from industry governing bodies (which are in regular contact with government and associated agencies) as well as inputs from our large shareholders and other stakeholders are used in addition to our usual assessment and prioritisation techniques. These include analysis of probability and impact, risk frequency and risk urgency. Where necessary these are then modelled with scenario and sensitivity parameters to help assess both size and scope.
BOARD
The Board has overall responsibility for risk management and internal control and for reviewing effectiveness, with specific oversight of Code of Conduct, ESG risks and climate-related matters. These have a dedicated agenda item at Board meetings with the Board meeting at least four times per year with a new ESG committee being formed
to give it more focus. The Executive Board members also ensure these topics have a dedicated agenda item at the monthly management meetings. The Executive members are charged with overall delivery whilst the Non-Executives challenge and give oversight and governance.
AUDIT COMMITTEE
The Audit Committee ensures independent oversight of the Board which considers risks and opportunities when setting and reviewing strategy, major plans of action, policies, annual budgets and business plans. It further considers matters when setting performance objectives, monitoring Group performance and reviewing and approving major projects, capital expenditures and acquisitions.
ESG COMMITTEE
The new ESG Committee will ensure oversight of ESG risks and opportunities when setting and reviewing strategy, major plans of action, policies, annual budgets and business plans. It further considers matters when setting performance objectives, monitoring Group performance, and reviewing and approving major projects, capital expenditures and acquisitions.
RISK REPRESENTATIVE
To ensure the Board can monitor and oversee progress against goals and targets, the CTO leads risk at a Group level. The CTO works with each platform with regards to ongoing identification of risks, opportunities, and potential impacts on the business as well as reviewing performance metrics and targets and ensuring overall continual improvement. The CTO then liaises with the Board and the relevant committees so that the Board is continually updated with regards to climate-related risks and opportunities as well as overall ESG matters.
SENIOR MANAGEMENT TEAM
The Group is set up as discrete operational platforms with each platform having its own management team. As such each platform Managing Director is responsible for assessing and managing risks and opportunities for their respective platform. Managing Directors and the Company’s executive management team meet monthly to ensure that Group objectives are met as well as ensuring local risks and opportunities are recognised and managed.
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