Vopak continually strives to strike the right balance between effective and professional entrepreneurship and effective control of the strategic, market, operational and financial risks arising from its ordinary business activities. Vopak applies the COSO Enterprise Risk Management Framework to identify and control events that might offer opportunities or which could represent threats, at the earliest possible stage. To this end, the Executive Board collaborates closely with the management of the divisions and the operating companies, as well as with the corporate staff departments. Joint ventures are included in this. The risks and controls identified are set out in a ‘risk register’ that is available to management and the Executive Board. The management teams regularly discuss the risks and measures taken and include them in their quarterly reporting. Risks and progress made on new measures are also covered in quarterly meetings with the Executive Board.
Scenarios which could have a significant adverse impact on our financial results are analyzed. Examples of such risks are:
By identifying and implementing mitigating steps, we are in a better position to face these risks and we can also concentrate on achieving opportunities for growth and implementing efficiency improvements.
Commercial, operational and financial excellence programs have also contributed to strengthening the internal control structure further.