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 Savannah’s ability to deliver long-term performance.
Risk management framework
Savannah’s risk management framework is made up of six components which combine to create an effective system of risk management and internal control.
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. These risks are assessed, after taking into account mitigation plans and actions, on two levels: the likelihood of the risk arising and the potential impact of such risk.
Principal risks
Set out below are the risks which the Directors consider particularly relevant to the Group’s business activities at the date of this report and the mitigating actions that are being taken to manage these risks. This section is not intended to be an exhaustive list of all the risks that may arise, nor is the order of the content intended to be any indication of priority. In a changing business environment, 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 |
