Internal risk management and control systems
The internal risk management and control systems of Boskalis are based on the principles of effective management control at various levels in the organization and tailored to the day-to-day working environment in which the company operates worldwide. One of the main foundations for risk control is the internal culture of the company, which is characterized by a high degree of transparency with regard to the timely identification, evaluation and reporting of risks and the avoidance of potentially perverse incentives. Given the hands-on nature of the company’s management style and the short lines of communication, there are three important factors in assessing and evaluating the internal risk management and control processes at Boskalis:
- In the daily operations the operational risk management and control is largely supported by an extensive framework of quality assurance rules, procedures and systems, in particular with regard to acquiring and executing contracts. These include clear guidelines for responsibilities, decision-making and risk control. The adequacy of this framework is reviewed regularly, also in light of the increasing diversity of the contracting and project activities the company performs in line with its strategy. In addition to audits by external certification agencies, Boskalis also performs regular internal audits under the auspices of the SHE-Q department. SHE-Q is a topic of regular discussion at the quarterly meetings between the Board of Management and the management of the business units, with the management of the SHE-Q department also being present.
- The daily management of the organization is based on clear responsibilities and short, clear lines of command which are unambiguously defined. Speed, know-how and decisiveness are of the essence, both competitively and in project implementation. Daily management is hands-on.
- The progress and development of the operating results and the financial position of individual business units and the company as a whole, as well as the operational and financial risks, are monitored by means of structured periodical reporting, analysis of the financial results and performance reviews at Board of Management and senior management levels.
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