Risk management

Doing business inherently involves taking risk and therefore risk management is an essential element of Fugro’s culture, corporate governance, strategy development, and operational and financial management.

The risk boundaries are driven by the company’s culture, corporate governance and strategic risk assessments. This is detailed in Fugro’s values, Code of Conduct, policies and procedures and authorisation schedules. The company’s risk management aims to identify, assess and manage risks in accordance with its risk appetite in the different categories.

Risk category Key risks Key risk appetite General risk appetite
Strategic Portfolio High For strategic risks, acceptable risk levels vary depending on the subject at hand, where expected rewards have to justify the risk. Generally the appetite is between above average to high.
Innovation Above average
Employees Moderate
Operational Project management Moderate Operational risks are handled with a moderate risk appetite. However, all risks related to QHSSE and cyber security are subject to low risk appetite.
QHSSE management Low
Cyber security Low
Financial Credit risk Low Financial risk appetite is low, with the intent to limit financial risks and maintain long-term solvency and stay well within bank covenants.
Currency exchange rate Low
Compliance Legal compliance Low Compliance is subject to a low risk appetite as Fugro strives for the highest level of compliance with legal and regulatory requirements and strives to not infringe on third party IP or properly license.
Intellectual property Low

Fugro has a risk management framework in place to identify and manage risks and internal controls. It is designed to provide reasonable assurance that objectives are met by integrating management control into daily operations, ensuring compliance with legal requirements and safeguarding the integrity of the company’s financial reporting and its related disclosures.

For more details, see risk management in the 2017 annual report.

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