Our approach to risk management
Risk management is an integral part of the Group’s business activities and our ability to identify, assess, monitor and manage our business risks is fundamental to delivering our objectives.
Risk management framework
Savannah’s risk management framework is made up of six components as shown in the graphics below.
Whilst the Board is ultimately responsible for the management of risk, the Group is structured in such a way that risk management is conducted at all levels of the Group and is embedded in our business practices:
The Board
The Board sets the risk appetite for the Group, establishes and monitors the risk management strategy and is responsible for maintaining a robust and effective internal control system.
The Executive team
The Executive Team runs the business in line with the risk management strategy established by the Board and is responsible for the day-to-day application of this strategy.
Managers and staff
Managers and staff are responsible for identifying and assessing risks relevant to their functions, roles or activities and for managing and reporting those risks in line with the Group’s policies and procedures.
Risk registers are maintained at the business and functional levels and are consolidated into the corporate risk register. The assessment of risks is based on both qualitative and quantitative evaluation of the likelihood and impact of each particular risk arising over the short and medium term, taking into account the Group's strategic and business objectives.
Principal risks
The principal risks and the mitigating actions that are being taken to manage these risks are set out below. This list is not exhaustive, there may be other risks that arise, and the order of the content is not intended to be any indication of priority. Other risks are assessed as part of the Group's risk management framework and are mitigated as they arise.
Trending of principal risk factors
Risk movement legend
| Strategic Risk Factors | Trend |
|---|---|
| 1. Country | |
| 2. Acquisitions | |
| 3. Reserves and Resources | |
| 4. Exploration and appraisal |
| Operational Risk Factors | Trend |
|---|---|
| 5. Capital projects | |
| 6. Industrial action | |
| 7. Supply interruption |
| Financial Risk Factors | Trend |
|---|---|
| 8. Foreign exchange | |
| 9. Gas sales agreements | |
| 10. Liquidity |
| Sustainability Risk Factors | Trend |
|---|---|
| 11. Ethical conduct | |
| 12. HSE&S and our social “licence to operate" | |
| 13. Cyber security and data protection | |
| 14. ESG and climate change | |
| 15. Organisation |
