Contact us About us Our operations Sustainability Investors Media Suppliers Home About us Corporate governance Risk management Risk management We recognise that effectively managing risks and opportunities is essential to our long-term success and is fundamental in helping us achieve our strategic objectives and protecting long-term shareholder value. Back to Corporate governance We recognise that effectively managing risks and opportunities is essential to our long term success. This is particularly true in the current risk environment and our ability to identify, assess and successfully manage current and emerging risks is critical in helping us achieve our strategic objectives and protecting long term shareholder value. Risk oversight and governance A risk focused culture and tone is instilled across all levels at Tullow and driven by the Board. The Board is responsible for overseeing the principal and enterprise level risk identification, assessment and mitigation process. To this end, the Board undertakes a bi-annual assessment of the risks facing the Company, including those risks that could threaten our business strategy, operating model, future performance, solvency and liquidity. Emerging risks are discussed by the Board and the Senior Leadership Team periodically throughout the year. The Board is also responsible for ensuring Tullow maintains an effective risk management and internal control system and works closely with Tullow’s Senior Leadership Team to ensure this is in place. The Senior Leadership Team is collectively responsible and accountable for monitoring principal and enterprise wide risks, with individual members taking ownership for risks that fall within their business area. Tullow recognises that risk cannot be fully eliminated and that there are certain risks the Board and/or the Senior Leadership Team will decide that they are happy to accept when pursuing strategic business opportunities. However, these decisions are made at an appropriate authority level and reflect Tullow’s defined risk appetite. Tullow’s governance framework is illustrated below. Every layer of the organisation is responsible for identifying key risks and managing them to the acceptable level (as set by the Board). Board Oversees identification, assessment and response to enterprise level risks (annual planning) Sets risk appetite Monitors effectiveness of risk management process Senior Leadership Team Sets the tone for an effective risk management culture Identifies and assesses enterprise level risks (bi-annually) Monitors effectiveness of risk reduction actions for those risks and decides the focus of effort (bi-annually) Decides which enterprise risks require periodic Board review Business leadership Ensures compliance with standards set Identifies and assesses their respective business delivery risks (at least annually) Ensures effective risk mitigation actions are planned Monitors effectiveness of risk mitigation and response plans (at least quarterly) Business functions Sets functional standards Identifies and assesses respective corporate risks (at least quarterly) Ensures effective risk mitigation actions are planned Monitors effectiveness of functional risk mitigation and response plans across business (quarterly) Principal risks A summary of Tullow’s principal risks is illustrated below. Detailed risk descriptions including their potential mitigations can be found in our 2020 Annual Report & Accounts. Internally, the Group monitors and mitigates a more substantive list of risks, but those listed below are the risks considered to be the most important at the time of publishing our 2020 Annual Report that could threaten our business strategy, operating model, future performance, solvency and liquidity. Our principal risks and risk reduction actions are monitored and assessed on an ongoing basis. No Risk description Strategy risk 1 Inability to make new significant oil discoveries and replenish exploration and subsurface portfolio 2 Failure to deliver commercially attractive and timely development projects Stakeholder risk 3 Disruption to business due to political / regulatory influence in Ghana Climate change risk 4 Impact on business and strategy resulting from climate change EHS or security risk 5 Major process safety, EHS incident or production failure on FPSOs Financial risk 6 Insufficient liquidity and funding capacity Organisation risk 7 Organisation model, people strategy and culture do not support strategy Conduct risk 8 Major breach of business conduct standards Cyber risk 9 Major cyber or information security incident Find out more about us Our Board Read more How we run our business Read more 9 Chiswick Park 566 Chiswick High Road London, W4 5XT United Kingdom Phone: +44 (0)20 3249 9000 Email: info@tullowoil.com Contact us Sitemap Glossary Accessibility Gender Pay Gap Modern Slavery Act 2015 - Previous Statements Cookie declaration Privacy notice and cookies Policy library Legal notice Connect with us on: © 2021 Tullow Oil plc Tullow Oil plc is registered in England and Wales: Number 3919249 Registered address: 9 Chiswick Park, 566 Chiswick High Road, London, W4 5XT, United Kingdom. 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