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Risk management

Fugro’s risk management policy is aimed at the long-term sustainable management of its business activities and the limiting or, where meaningful, hedging of the associated risks. Due to the wide diversity of markets, clients and regions and its broad portfolio of activities, quantifying all the existing risks relevant to the Group as a whole is virtually impossible. Risks are, however, quantified wherever possible and useful. This applies amongst others to the influence of the exchange rate of the US dollar, the Australian dollar, the Norwegian kroner and the British pound.

Fugro’s long-term risks are limited due to:

  • The diversity of the activities in more than one international market segment and region
  • Broad client base; typically no clients with more than around 4% of Fugro's total revenue (unless in case of single large contract)
  • Use of modern, often proprietary, technologies and professional employees
  • The ability to adjust quickly to exchange rate and price changes as most of the contracts are of short duration
  • Geographical spread of the activities
  • A balanced and flexible vesselfleet composition (owned and chartered)
  • Limited risks related to pension obligations
  • Good internal risk management and control systems
  • Part of the (manpower) capacity being hired on a flexible basis
  • Strong financial position to support further growth and take on competition
  • External review of agents
  • Risk on large, complex projects mitigated by strong focus on project management and training
For more information on risk management we refer to the chapter in the 2013 Annual Report
Risk management 




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