slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
INVESTOR MANAGEMENT DAY ‒ RISK PowerPoint Presentation
Download Presentation
INVESTOR MANAGEMENT DAY ‒ RISK

Loading in 2 Seconds...

play fullscreen
1 / 12

INVESTOR MANAGEMENT DAY ‒ RISK - PowerPoint PPT Presentation


  • 107 Views
  • Uploaded on

1. INVESTOR MANAGEMENT DAY ‒ RISK. 2. Risk Department Structure. Risk Manual and Management Methodology. Construction Risk Management. Challenges facing the industry. Risk Department Structure. Group Five Limited Board. Chair of Audit. Committee. CEO. Chair of Risk. Committee.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'INVESTOR MANAGEMENT DAY ‒ RISK' - ethan


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

1

INVESTOR MANAGEMENT DAY ‒ RISK

slide2

2

Risk Department Structure

Risk Manual and Management Methodology

Construction Risk Management

Challenges facing the industry

risk department structure
Risk Department Structure

Group Five Limited Board

Chair of Audit

Committee

CEO

Chair of Risk

Committee

Project Risk

Committee

G.R.O.

EXCO

Head Office

Head Office

Head Office

Head Office

Head Office

Head Office

Head Office

Head Office

Head Office

Statutory

Country

SHEC

Quality

Legal

Compliance

Commercial

Internal Audit

Risk Manager

BusinessUnits

Sites

Sites

Sites

Sites

Sites

Sites

Sites

Sites

the group five risk manual

4

The Group Five Risk Manual
  • Risk Management Policy
  • Philosophy
  • Framework
  • Risk Department structure
  • Risk Committee
  • Responsibility matrix
  • The system – “STAR”
  • Strategic Risk
  • Operational Risk
  • Project Risk (Best Practice)
  • SHEQ
  • Country Risk
  • Financial Risk
  • Legal Risk
  • Information Technology
  • Insurance
  • Internal Audit

The Top 10 risk exposures in construction today

risk management methodology
Risk Management Methodology
  • Online system reports,
  • RM dashboards,
  • RM reports
  • Risk Committee reports
  • Risks are identified on all three levels:
  • - Strategic: Bi-annually,
  • Operational: Quarterly
  • Project: Monthly (CLC)
  • - Management meetings
  • - Monthly site meetings
  • Assign responsibility, action to be taken & target dates on action plans.
  • Real time notifications & reminders,
  • RM dashboards, reports & statistics

Group

  • Group Risk Officer reports to the Risk Committee
  • Policies & Procedures based on industry best practice
  • - Risk culture awareness campaigns
  • RM Surveys

Strategic

BU

CultureSystem

CultureSystem

Operational

Site

Project

  • Questionnaire based on world wide organizational failures and lessons learnt,
  • Purpose is to trigger your thoughts i.t.o risk scenarios
  • Contract Life Cycle
  • Risk based Internal Audits
  • Output from STARS is the input into IA audit program
  • Output of IA is input into STARS
  • Independent assurance that risks & opportunities are being identified and managed.
  • Risk and Opportunity Management system,
  • Database of all Risks & Opportunities in the form of risk registers,
  • Action plans
construction risk management model

6

Construction Risk Management ‒ model

Compliance

HR

SHEQ

Legal &

Commercial

Risk & Opportunity

STARS

VALUE

One System

Contract Life Cycle

PROFIT

CORPORATE GOVERNANCE

Internal Audit

LOSSES

Management

IT

Country Risk

Business

Development

Finance

construction risk management stars system

7

Construction Risk Management ‒ STARS System

A risk and opportunity management system, ensuring consistent behaviour and real-time monitoring of risks andopportunities to enable improved decision-making

construction risk management the risk life cycle within the contract life cycle

8

Group Business Risk Register

Manual Filter & Upload

Consolidated Group Project Risk Register

  • Design Rules:
  • Nor more than 15 questions per audit
  • All questions have pre-defined answers

2.

Pre-tender risk assessment

3.

Tender handover & Pre-contract Planning

1.

Business Development (clearing house)

4.

6 Monthly Risk Review

5.

Contract Closure

(Post Mortem)

Construction Risk Management ‒ The risk life cycle within the contract life cycle
construction risk management the role of internal audit
Construction Risk Management ‒The role of Internal Audit
  • Risk based auditing is conducted on a continuous basis throughout the year on all business units and sites:
    • Information utilised in conducting risk based audits include:
      • STARS Risk Registers
      • Identifying risks via discussions with senior management from all business units
      • Best practice processes based on information from the ECRI and the Contract Life Cycle
  • All mega projects are audited at least twice a year
  • We also conduct joint audits with our JV partners on all joint venture projects
  • Site audits are conducted on all sites when they reach the 40% completion stage
construction risk management country risk management within the contract life cycle

10

Construction Risk Management ‒ Country risk management within the contract life cycle
  • Selecting appropriate tendering entity for statutory and tax purposes
  • Pricing specific costs associated with operating in the chosen country (logistics, tax etc.)
  • Specific risk review for all international contracts.
  • Planning and finalising logistical & operational issues
  • Establishing contract for appropriate legal entity, tax structures and compliance requirements
  • Guideline on practical tax implications of contract
  • Mobilising appropriate workforce

Country risk analysis selecting acceptable countries

Share lessons learnt

  • Advising on and overseeing compliance
  • Continuous monitoring of country risk profile
  • Site audits and contract risk reviews
challenges facing the industry
Challenges facing the industry
  • Skill shortage
  • Commodity price volatility and availability
  • Changing client needs (Large multi-disciplinary contracts)
  • ESKOM impact
  • Availability of key machinery
  • Subcontractor capacity
  • Health & Safety
definition of acronyms
Definition of acronyms

SHEQ = Safety, Health, Environment, Quality

STARS = Risk Tracking System

CLC = Contract Life Cycle

ECRI = Engineering and Construction Risk Institute

EPC = Engineer, Procure and Construct