Risk management

Fugro’s risk management is aimed at long-term sustainable value creation. It is designed to provide reasonable assurance that objectives are met by integrating management control into Fugro’s daily operations, ensuring compliance with legal requirements and safeguarding the integrity of the company’s financial reporting and its related disclosures. Good governance and high standards are essential for achieving business objectives and managing risk.

Fugro’s risk management aims to identify, assess and manage risks in accordance with the company’s risk appetite in different risk categories. 

Risk category Key risks Key Risk appetite General risk appetite
Strategic Portfolio High 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.
Client focus and market leadership Above average
Organisation and employees Above average
Technology leadership and innovation Above average
Operational QHSSE management Low Operational risks are handled with a moderate risk appetite. However, all risks related to QHSSE and cyber security are subject to low risk appetite.
Capacity management Moderate
Project management Moderate
Cyber security Low
Financial Credit risk Low Financial risk appetite is low, with the intent to limit financial risks and maintain long-term solvency and stay well within bank covenants.
Currency exchange rate Low
Legal compliance Compliance Low Compliance is subject to a low risk appetite as Fugro strives for the highest level of compliance with legal and regulatory requirements and strives to not infringe on third party IP unless properly licensed.
Intellectual property

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

The first level of the control environment consists of Fugro’s employees who 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 control, IT, tax, human resources, insurance, treasury and legal.

The third and final level consists of 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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