Risk Management Strategies

The corporation is entering new stages of opportunity both on the home front and internationally. In a timely response, we are developing an appropriate programme for the strategy and process of identifying, prioritising and measuring business risk from a sustainability position. To further this programme on a formalised basis, our work focuses on strengthening the underlying systems and controls that track and measure the risk-to-business relationship. The objective is to bring a margin of comfort to stakeholders in the veracity and materiality of the information provided and reflect enterprise cost and impact. In this programme’s second year, our four-stage approach framework continues to dictate process. However, with external influences and the integration into the EWRM, some priorities and related indicators have changed. Regardless, the four-stage approach and the processes of assessment remain consistent, thus establishing a framework for measurement of variable future risks.

Our internal sustainability accounting methodology links sustainable business risks to financial consequence. This
framework was formulated based on MTRC’s prioritised business risk model and the Corporate Sustainability Assessment questionnaire developed by the independent Sustainable Asset Management research group. It is used principally as a tool to measure and systemise the actual financial costs in managing identified risks and further sustainability costs. The framework employs MTRC’s Activity Based Costing system for data comprising staff and departmental operating expenses.