The Risk Management Department has responsibility to maintain SEDCO Holding’s reputation for excellence in governance, working closely with the Board’s Risk Management and Audit and Risk committees.
Since the creation of the department in 2013, it has been instrumental in establishing and adhering to stringent risk management benchmarks that exceed the norm for family-owned businesses. This principle was again central to 2019 activities, implementing extensive mechanisms to measure and manage risks by systematic identification and quantifying, with corresponding levels of risk appetite and tolerance.
The core process lies in the customized and fully integrated risk management framework, enabled through investment scorecards feeding into an overall risk dashboard for SEDCO Holding. The approach embeds risk calculations within asset allocation and sets guideline risk limits for all investments, markets and operations.
Specific 2019 projects included the evaluation of all Group assets from a risk perspective, designed to make risk a quantifiable element that is priced directly into SEDCO investment strategies.
Corporate governance was also reviewed, and authority matrices created for investments and real estate. Top risks and mitigants were regularly identified and reported to the CEO and Audit and Risk Committee, along with detailed risk analyses.
In-house training for employees helps to embed a risk awareness culture within SEDCO. Digital transformation is being embraced as an intrinsic part of best risk management practice and generally becoming more IT conscious.
In the coming year, risk management will be further integrated into corporate strategy and its role expanded within the portfolio companies, especially when evaluating new opportunities.