Risk management

Doing business involves taking risk and therefore risk management is an essential element of Fugro’s culture, corporate governance, strategy development, and operational and financial management.

Fugro’s risk management is aimed at supporting long-term sustainable value creation. It is designed to provide reasonable assurance that objectives are met by integrating management control into daily operations, ensuring compliance with legal requirements and safeguarding the integrity of the company’s financial reporting and its related disclosures. Fugro’s risk management framework is in line with the Dutch Corporate Governance Code.

Key risks

Risk category	Risks	Risk appetite	Fugro’s approach
Strategic	Market exposure	High	For strategic risks, acceptable risk levels vary depending on the subject at hand, where expected rewards have to justify the risk. In any case, all risks related to climate change and employees and capacity are subject to a low-risk appetite
	Climate change	Low
	Innovative capability	High
	Employees and capacity	Low
Operational	Health, safety and security	Low	Operational risks are managed with a moderate risk appetite. However, all risks related to health, safety and security, and information security and technology are subject to a low-risk appetite as Fugro strives for the highest level of performance.
	Project execution	Moderate
	Information security and technology	Low
Financial	Company financing	Low	Financial risk appetite is low, with the intent to limit financial risks and maintain long-term solvency and a sustainable capital structure.
	Liquidity and working capital	Low
	Currency risk	Low
Compliance	Legal & regulatory compliance	Low	Compliance is subject to a low-risk appetite as Fugro strives for the highest level of compliance with legal and regulatory requirements.

Risk governance

Risk Governance

For more details about Fugro’s risk management, in particular regarding the key risks mentioned in the table above, see https://fugroannualreport.com/

Risk management

Key risks

Risk governance

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