INVESTOR MANAGEMENT DAY RISK

Transcription

1 1 INVESTOR MANAGEMENT DAY RISK

2 2 Risk Department Structure Risk Manual and Management Methodology Construction Risk Management Challenges facing the industry

3 Group Five Limited Board Chair of Risk Committee CEO Project Risk Committee Chair of Audit Committee EXCO G.R.O. SHEC Quality Legal Commercial Risk Manager Statutory Compliance Country Internal Audit Business Units Sites Sites Sites Sites Sites Sites Sites Sites

4 4 Risk Management Policy Philosophy Framework Risk Department structure Risk Committee Responsibility matrix The system STAR Strategic Risk The Top 10 risk Operational exposures Risk in construction today Project Risk (Best Practice) SHEQ Country Risk Financial Risk Legal Risk Information Technology Insurance Internal Audit

5 Risks are identified d on all three levels: - Strategic: Bi-annually, - Operational: Quarterly - Project: Monthly (CLC) - Management meetings - Monthly site meetings -Group G Risk Officer reports to the Risk Committee -Policies & Procedures based on industry best practice - Risk culture awareness campaigns -RM Surveys Culture System - Risk based Internal Audits - Output from STARS is the input into IA audit program - Output of IA is input into STARS - Independent d assurance that t risks & opportunities are being identified and managed. Strategic Operational Project - Online system reports, - RM dashboards, - RM reports - Risk Committee reports Culture System - Risk and Opportunity Management system, - Database of all Risks & Opportunities in the form of risk registers, - Action plans - Assign responsibility, action to be taken & target dates on action plans. - Real time notifications & reminders, - RM dashboards, reports & statistics - Questionnaire based on world wide organizational failures and lessons learnt, - Purpose is to trigger your thoughts i.t.o risk scenarios - Contract Life Cycle

6 6 SHEQ Compliance HR Legal & Commercial One System STARS Contract Life Cycle Internal Audit VALUE PROFIT CORPORATE GOVERNANCE LOSSES IT Country Risk Business Development Finance

7 A risk and opportunity management system ensuring A risk and opportunity management system, ensuring consistent behaviour and real-time monitoring of risks and opportunities to enable improved decision-making 7

8 8 Group Business Risk Register Manual Filter & Upload Consolidated Group Project Risk Register Design Rules: Nor more than 15 questions per audit All questions have predefined answers 1. Business Development (clearing house) Pre-tender risk assessment Tender handover & Pre-contract Planning 4. 6 Monthly Risk Review 5. Contract Closure (Post Mortem)

9 Risk based auditing is conducted on a continuous basis throughout the year on all business units and sites: Information utilised in conducting risk based audits include: STARS Risk Registers Identifying risks via discussions with senior management from all business units Best practice processes based on information from the ECRI and the Contract Life Cycle All mega projects are audited at least twice a year We also conduct joint audits with our JV partners on all joint venture projects Site audits are conducted on all sites when they reach the 40% completion stage

10 10 Country risk analysis selecting acceptable countries Selecting appropriate tendering entity for statutory and tax purposes Pricing specific costs associated with operating in the chosen country (logistics, tax etc.) Specific risk review for all international contracts. Planning and finalising logistical & operational issues Establishing contract for appropriate legal entity, tax structures and compliance requirements Guideline on practical tax implications of contract Mobilising appropriate workforce Advising on and overseeing compliance Continuous monitoring of country risk profile Site audits and contract risk reviews Share lessons learnt

11 Skill shortage Commodity price volatility and availability Changing client needs (Large multi-disciplinary contracts) ESKOM impact Availability of key machinery Subcontractor capacity Health & Safety

12 SHEQ = Safety, Health, Environment, Quality STARS = Risk Tracking System CLC = Contract Life Cycle ECRI = Engineering and Construction Risk Institute EPC = Engineer, Procure and Construct