· Risks and opportunities
- Connectivity of information
- Strategic focus and future orientation
Tullow Oil presents a comprehensive insight into the risk management process and principal risks of the business for the year. Within this discussion the company provides clear indications of how these risks have evolved, with contextual information that allows the reader to understand how these risks could impact the company's future strategy. Tullow Oil also provides the critical linkages between the risks and KPIs which could be impacted by these risks to give a more holistic overview.
Initially, Tullow Oil identifies the risk management process, highlighting both the people involved in the risk management process, as well as the frequency of key risk management actions. The principal risks of the business for the year in review are subsequently reviewed with clear indications of the company's performance against these, before Tullow Oil discuss how the operating environment of the business has evolved during the year. As a result of this discussion, the company is able to look to the future to identify the key risks for the coming year.
Tullow Oil then presents the risks in a methodical tabular format to demonstrate a comprehensive risk discussion. For each risk, Tullow Oil highlight which KPIs could be impacted by the risk, the executive responsible for each particular risk, the potential impacts, the policies and systems in place to mitigate these risks and the progress made during the year.