The Risk Management and Corporate Governance Department is responsible for maintaining SEDCO’s reputation for excellence in corporate governance, working closely with the Audit and Risk Committee.
The Department continued to play an integral role in SEDCO Holding’s strategy, putting in place a comprehensive system to identity, measure, monitor and manage risks, which are identified, quantified and matched to risk appetite and tolerance.
The core of this process lies in the Department’s customized and fully integrated risk management framework, which is enabled through investment scorecards feeding into SEDCO’s overall risk dashboard. Risk calculations are proactively embedded into the company’s asset allocation and guideline risk limits established for all investments, markets and operations.
Covid-19 created a number of additional risks, so identifying and mitigating these made the Department integral to the Crisis Committee, which operated at both the Holding and operating company levels, to ensure full alignment and engagement throughout the organization.
Despite the obvious challenges, the Department identified the main risks and how to mitigate them in all operating company risk reviews, reporting these to SEDCO Holding’s CEO and Audit and Risk Committee on a quarterly basis.
The Department’s reports included economic, financial and industry analyses, as well as benchmarking for the operating and investee companies. We also factored risk budgeting and analytics into the company’s asset allocation and strategy.
Our focus on the business did not affect our commitment to making a number of improvements to the corporate governance manual and subsidiary governance model. We secured Board approval to produce a world-class corporate governance manual – engaging and aligning all stakeholders throughout the process and conducting inhouse risk training on corporate governance awareness, both for SEDCO Holding and the operating companies.
In the year ahead, we will take further measured steps to align our investments and strategy for value creation, in line with Saudi Vision 2030, and focus on implementing the corporate governance manual and subsidiary governance model across the Group.