Our risk management approach aims to identify, assess, and analyse risks on all aspects of our business and then put measures in place to prevent loss while creating value for stakeholders. FHN adopts a proactive approach to ensure that all risks are identified, assessed, and adequately managed or mitigated. HAZOP (hazard and operability study), HAZID (hazard identification) and process Risk Assessment are carried out on all major projects.
Risk management is an important aspect of our activities at FHN
With respect to risk management, the objectives of the Company are as follows:
Ensure that, across the entire business value chain, all our activities are based on and comply with sound industry principles and applicable regulations.
Manage risks across all business segments to avoid undue losses as we pursue the achievement of the Company’s strategic objective and delivery of specific business targets.
Embed risk management as a core element of our business processes across all business segments and activities; such that all staff have shared responsibility for identifying, assessing, and managing risks in the course of carrying out their work activities.
Ensure that risks are appropriately identified, assessed, and measured and that appropriate controls are in place to enable Management to act as appropriate in the interest of the business.
Risk Governance Structure and Responsibilities
The Board of Directors (via distinct Board Committees and the full Board) is responsible for the formulation of the Company’s risk management strategy and policy as well as the definition of risk appetite and risk tolerance statements. On a quarterly basis, the Board will review the risk strategy, related policies, and risk appetite/tolerance statements to ensure that they are comprehensive, appropriate, effective, and consistent with the realities of the Company’s internal and external business environments.
The Executive Team is responsible for the implementation of risk management strategy and policies and for the embedment of a risk management culture in the Company. The Team is also responsible for providing the tools, resources, and internal controls to ensure compliance with the Risk Appetite and Risk Tolerance limits. The General Counsel provides the focal point within the Executive Team for risk management and liaises directly with the Enterprise Risk Management function of the Company.
The Enterprise Risk Management function is responsible for providing independent functional oversight for internal audit and risk management within the Company. The Head RM reports directly to the MD/CEO with dotted-line reporting relationships to the Board Risk Management and Governance Committee.
Functional Leaders across all segments of the business are responsible for managing risks that are related to their specific business functions.