Our Risk and Opportunity Assessment Guidelines are based on an industry-standard approach to identifying, assessing, and managing risk and opportunity. The guidelines incorporate the use of a two-dimensional, semi-quantitative evaluation of consequence and likelihood, as well as a structured approach to managing mitigation and control plans, for each risk assessed. This methodology is utilized within our Enterprise Risk Management, Operational Risk Management, and Project Risk Management processes.
Consistent with good risk management practices, we avoid risk where it makes sound business sense, and accept risk within tolerance boundaries developed by Senior Leadership. With risk acceptance, there is an inherent need to address appropriate mitigation efforts in order to maintain a risk profile at an acceptable level, as external and internal influences are consistently dynamic. Enterprise Risk Management, Operational Risk Management, Project Risk Management, Treasury, Global Risk Management, ESR, HSLP, Legal, HR and Investment System programs are designed to build and implement the appropriate mitigation controls.