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Corporate Culture
Risk Management
System and Processes
Sustainable Development by Design
MTR Corporation has an established and well-governed corporate management structure. However, when translating policy to workplace practice, we are only as effective as the understanding and application of management processes by the individual employee.
As the foundation of service delivery, we work under the corporate culture expressed in our Diamond Vision. This roadmap of community, process, strategy and people shaped by our vision, mission and values promotes the ethos of being a learning organisation and encourages the innovative, enterprising and solutions-seeking mindset at the workplace. From this culture, our corporate policies and management systems come to life at the front line.
Corporate Social Responsibility Guideline – Through socially responsible behaviour, MTR Corporation aims to be a competitive and profitable enterprise able to make a long-term contribution to sustainable development by generating economic growth and providing jobs and careers, while supporting the social and environmental needs of the society, locally and internationally.
The Enterprise Risk Management (ERM) system, functional from early 2006, significantly improves our business risk assessment and related management processes. The purpose behind the ERM is to provide the systematic treatment of risk across the organisation, give a wide visibility on risk so that internal stakeholders grasp how risks impact the whole of the organisation, and build a common risk management culture.
The ERM manual instructs on the methodology and processes for identification, assessment and mitigation of risk. As such, the risk process extends responsibility to the line manager as an individual risk owner. He or she, in turn, reports to the risk register manager who takes ownership of a particular risk register attached to a project or business function/unit in which they all are participants. Guided by the Enterprise Risk Committee, significant risks are filtered upward via the prioritisation process and ranked within the structured risk matrix, where they are actively managed. The Selected Priority Business Risks identify a portion of the current priority risks within the context of sustainable best practice categorised under our social and environmental performance. (See Table here)
The application of the ERM on a corporate-wide basis and to key operational functions is a contributing factor in the establishment of effective captive insurance for our operations. The ERM also helps satisfy the insurance market that the Corporation is a leading practitioner of safety-related systems. Enacting this risk strategy translates to marked changes in levels of insurance cover and
its costs.
Performance is the outcome of the interaction between the decisions taken in the management of business risk and of stakeholder engagement. The decision-making processes for these two strategies follow specified procedures for the identification and prioritisation of those areas that are material and inclusive to the sustainability business case. For risk management, we operate in a clearly delineated decision environment. Through the ERM process, management identifies, prioritises, mitigates, monitors and reports on the impact and efficacy of the management of risk. The process ranks risk at various critical levels and assigns responsibility either at the corporate or divisional level for mitigation or control. The risk rankings cascade down in importance according to their potential impact on delivery of business strategy.
Stakeholder engagement works under a system that reflects not only self-interests of individual stakeholder groups, but also their perceptions of value. These interests and perceptions change over time, as does the importance of individual stakeholder groups themselves, thus introducing multi-dimensional factors to traditional management processes. A more flexible system has and continues to evolve that assesses the expectations (both interests and perceptions), identifies our strategy gaps and formulates the influential actions and skills to close the gaps. The purpose is to capture the process inputs and track change in a measurable universe that feeds into sustainable competitive advantage.
The Materiality Map expresses the actions and interaction of the risk management and stakeholder engagement processes as outcomes that act in conjunction, both individually and collectively, with the scaling in importance of the ability of a particular outcome to influence our business delivery. This map illustrates such interactions as volumes that alter as business risk and stakeholders' interests change relevant to their influence on the ability to deliver. As such, it inherently reflects the principles of materiality and inclusiveness, and where they are captured in the development of sustainable competitive advantage.
This mapping exercise graphically displays our reporting strategy for the ranking of business risks. Critical elements captured in our ERM priority levels and key stakeholder interactions are expressed in the printed report, reflecting those issues/interests that assert the most influence on delivery of strategy. The second tier of persuasive issues and stakeholder interests is captured in our online reporting exercise.
This area reflects the non-critical but highly important business risks/engagement performance outcomes. The third and broadest area captures those influences on performance that are important, but can be managed at the divisional level. The three areas, moreover, are linked in that the largest encompasses all three volumes while the mid-tier level encompasses only itself and the smallest volume, which represents the most influential and critical area of management.
The Map is a conceptual representation of how and where we apply the principles of materiality and inclusiveness to our business process. Risk management and stakeholder engagement act in continuous exchange as complementary processes, which take in both quantative decision outcomes. These processes can act individually or in concert with the measurement of the ability to influence business delivery, creating a three-dimentional view of the resilience of how we deliver business goals. The purpose is to demonstrate how principles of sustainable competitive advantage and are integrated into business strategy, combined with application of the principles of materiality and inclusiveness.
Sustainable Development by Design
We view sustainable development as a journey of continuous improvement in best practice. The guidelines for structuring a maturity matrix as outlined in BS8900:2006 published by the BSi Group give us the opportunity to render our performance and related management strategy into an annualised snapshot. In translating our management processes (business risk management and stakeholder engagement) into the principles of sustainability as outlined in the sample maturity matrix of the Standard, we are able to assign quantities and map our progress over time. In plotting our performance in this context, we self-assess our strengths and weaknesses in business strategy and act upon them in a consistent and progressive manner. This exercise also acts to validate our business case against the accepted universal principles that drive sustainable development.