Risk management

Our risk management policy is aimed at long-term sustainable management. It is designed to provide reasonable assurance that objectives are met by integrating management control into our daily operations, ensuring compliance with legal requirements and safeguarding the integrity of financial reporting and its related disclosures.

Fugro's risk management policies aim to identify, assess and manage risks in accordance with the company's risk appetite:

Risk category Fugro's risk appetite Key risk areas
Strategic

For strategic risks, acceptable risk levels vary depending on the subject at hand, where expected rewards have to justify the risk. Generally the appetite is between above average to high.

  • Market leadership
  • Innovation and technology
  • Organic growth plus M&A
Operational

Operational risks are handled with a moderate risk appetite. However, all risks related to QHSSE are subject to low risk appetite.

  • Capacity management
  • Price changes
  • Project management
  • QHSSE management
Financial

Financial risk appetite is low, with the intent to limit financial risks and maintain long-term solvency.

  • Credit risk
  • Capital risk
  • Currency exchange rate
Compliance

Compliance is subject to a very low risk appetite as Fugro strives for a 100% compliance with legal and regulatory requirements.

  • Compliance

Fugro has an internal control framework in place to manage risks and maintain internal controls. 

The first level: the employees that perform the day to day activities in the business operations, and their management

The second level: consists of regional and divisional management and the company’s support functions such as corporate controlling, tax, human resources, insurance and legal. 

The third level: the independent internal audit department which provides the line management, the Board of Management and the audit committee with information about the structure, existence and effect of the system of internal control.

The Board of Management has the overall responsibility for Fugro’s risk management and internal control systems. Due to the wide variety of markets, clients and regions and Fugro’s extensive activity portfolio, the management of the operating companies is responsible for the monitoring of and compliance with the internal control systems.

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