Page 36 - Apraava Energy Report_01-73

36 Energy in action

Advantages of Apraava Energy’s ERM heads update the risk register on a regular basis to ensure
framework that the information is up to date. Management is briefed on
any potential risks ahead of time so that a thorough risk
• Allows for a clear and concise view of risks control plan can be implemented. The four-tier structure of
Apraava Energy’s risk management framework is depicted in
• Protects resources that matter the most
Figure 6.
• Ingrains risk management in the Company’s culture
Three-level Independent Risk Assessment Process
Financial, operational, and market risks are the three types of • Corporate level - To identify key risks faced by the
potential risks. These risks are taken into account when organisation
developing annual business plans. Business heads conduct
periodic risk identification assessments with guidance from • Business level - To identify risks in each business
the Risk Management (RM) team, which meets quarterly, and • Asset/ Department Level - To identify risk in each
based on inputs from asset/department heads. Business asset/department

Figure 6: Four-tier risk management structure

Asset/ Risk Risk
Department Business Management Management
Committee
Heads
Heads Team (RMC)

These risks are taken into account when developing annual

business plans. Business heads conduct periodic risk identification

assessments with guidance from the Risk Management (RM) team,

which meets quarterly, and based on inputs from

asset/department heads.