People, property, earning capacity, and reputation are key determinants of Gazyk’s future. Their development, preservation, and security are essential for growth and long-term survival. Gazyk seeks to protect and preserve both its tangible and intangible assets from loss or damage that could materially affect its ability to fulfill its commitments and discharge its responsibilities to its customers, employees, shareholders, and the communities in which it operates. Gazyk also seeks to assume and manage risk associated with strategic business opportunities that may leverage its domain knowledge and its intellectual, technical, and financial capital.
Effective implementation of the risk management process improves the quality of decisionmaking in the face of uncertainties. The risk management process should operate efficiently and consistently so that appropriate and reliable reporting of risk management practices can be made when so required.
Gazyk engages in a process of risk management to
a) Identify and assess risk and opportunities associated with Gazyk’s business activities
b) Identify and use appropriate risk management tools, training, and techniques that facilitate and enhance the quality of decision making
c) Select and implement cost-effective risk control measures to avoid or reduce undesired exposures to loss or unwanted volatility
d) Encourage a spirit of entrepreneurship such that natural tendencies toward risk aversion are tempered by awareness that measured risk assumption is a significant component of improved profitability
e) Implement appropriate risk financing and risk transfer strategies (including, but not limited to, insurance) to offset the effects of any losses or unwanted volatility, so that the lowest sustainable cost of risk is obtained over the long term.
Commitments to acquire new businesses, to allocate resources to geographically or politically challenging zones, to launch new business activities, or to accept atypical or onerous contractual terms and conditions must be supported by reasoned and reportable risk analyses – to support the appropriate management approval process.
GeoMarket managers and Area business managers have the primary responsibility and accountability for identifying and assessing operational risk. They also have the primary responsibility for implementing appropriate risk control measures where the cost/benefit has been demonstrated. Evaluation of risk control options is performed in close liaison with the business support functions, notably, QHSE, Risk Management, and Legal and Contract Management. The Risk and Insurance Management Team and the Finance Function have the shared responsibility for designing, proposing, and maintaining appropriate risk financing and risk transfer strategies.