We deploy an ERM Framework to identify the key risks that may impede the achievement of our business goals in the short, medium and long-term. It sets out a consistent definition of risk and risk tolerance limits to ensure that business units have a common understanding when identifying and assessing risks. Besides business risks, this framework also analyses the financial and non-financial impact of risks arising from sustainability areas, including environmental, social and governance.
As part of the ERM Framework’s risk universe, the Climate Risk category covers both physical and transition risk on our businesses due to climate change.
Each business unit utilises the risk likelihood and impact parameters to identify their key risk exposures over a five-year horizon, while assessing and managing risks within their own risk register through detailed action plans, annual business budgeting and planning processes.
The Group’s ERM Framework is also complemented by an Emerging Risk Framework, which focuses on longer-term risk assessments and the proactive monitoring of emerging risks, including those from climate change and other sustainability trends.
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