SearchRisk Assessment and Governance
SABIC continues pursuing its strategic goals to maximize shareholder value through taking calculated risks that are predefined by the organization’s Risk Management Framework. SABIC does not tolerate any scenarios or events leading to safety and security incidents that threaten the wellbeing of its employees, contractors, the public and/or impact the environment. SABIC does not tolerate any scenarios or events in relation to integrity, ethical/regulatory non–compliance and Intellectual Property breach and/or infringement.
SABIC has established a risk management policy and an Integrated Governance system (as shown in the diagram below) to effectively identify, understand, and manage the risks facing the company and affecting our business performance. We are also leveraging opportunities in pursuing our objectives to meet our strategic goals. All SABIC’s functions regularly provide coordinated reports to the Executive Risk Management Committee.
The SABIC Board of Directors, through the Board Risk and Sustainability Committee, oversee the activities of the Enterprise Risk Management (ERM) department in assessing key business risks for the company. The SABIC ERM team reports a detailed assessment on the risks facing the company. The Board Risk and Sustainability Committee monitors these reports and gains assurance on the effectiveness of the risk management system on a regular basis and makes appropriate recommendations to the Board of Directors on the efficacy of measures taken to minimize the impact of all risks.
EXCELLENCE IN RISK ASSESSMENT
SABIC has a strong risk culture. We consider all our employees custodians of this culture and trust them to adhere to to our standards and risk mindfulness in executing SABIC’s strategy. We continuously aim to increase the risk management awareness among all SABIC’s employees that reflects on their understanding, commitment, and empowerment to identify and manage risks.
Recently, SABIC has achieved recognition from a leading certification body confirming that our operated risk management system is aligned with the ISO 31000:2018 – Risk Management Guidelines, which demonstrates assurance to our shareholders, customers and suppliers.
As a result of this and other collective efforts and achievements by SABIC’s ERM team, SABIC has won the prestigious 2022 CIR International Risk Management award, by showcasing our robust risk management framework, resilient ERM practices and the strategic integration of ERM into company-wide decision-making processes. The award is an acknowledgement of the unwavering support and guidance of our Board and Executive members as well as all leaders across SABIC. The award further demonstrates our commitment to scale new heights in the ERM domain while demonstrating assurance to our stakeholders: regulators, shareholders, partners, customers, employees and suppliers. This award confirms SABIC’s place as a global leader in ERM practices.
SABIC is exposed to various risk factors that might limit our ability to achieve our strategic, operational and financial objectives. The impacts of these risks are minimized by considering and implementing various strategies and approaches to manage the risk – that is, the response plan.
We consider all our employees custodians of our strong risk culture.
