Murray & Roberts

Risk Management

Risk management is integral to governance and our value creation strategy. Significant effort is made to embed risk awareness, prevention and mitigation measures across group operations.

The appropriate governance structures, including the Board risk committee, executive risk committee, project oversight committee and business platform risk committees, ensure that the appropriate operational and functional procedures, systems and controls are in place to mitigate risks and harness opportunities in pursuit of our strategic objectives.

Given the Group’s scale and complexity, it is not possible to completely eliminate all risks arising from internal and external business and commercial interfaces. Our experienced management teams manage and maintain a planned, coordinated and structured approach to identify, assess, address, monitor, communicate and report the Group’s risks. The mitigation of those risks, most likely to prevent the Group from achieving its strategic objectives are prioritised. Guiding this approach is the Group Risk Management Framework, which promotes a consistent risk management culture across the Group.

Risk Management, Regulatory Compliance and Independent Assurance (internal and external audits) are the three pillars of the Group Integrated Assurance Framework.

The group risk management framework aims to:

• Align strategy with risk tolerance;
• Improve and streamline decision-making, which improves the Group’s risk profile;
• Promote the strategic and coordinated procurement of a quality order book, which contains a known and planned level of risk and an appropriate level of reward;
• Ensure reasonable commercial terms and conditions are contracted based on a predetermined set of acceptable contracting principles, together with the rational pursuit of commercial entitlement;
• Promote rigorous project reviews, and early responses to projects deviating from planned and tendered expectations;
• Promote continuous improvement through the institutionalisation and application of lessons learnt;
• Reduce operational surprises, improve predictability and build shareholder confidence;
• Build robust organisational risk structures and facilitate timeous interventions, to promote long-term sustainable growth; and
• Promote the efficient and proactive pursuit of opportunities.

For more information about our Group risks and risk management practices, see our online integrated report