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Risk Management Framework for IPBC: A Comprehensive Approach

In a bid to ensure the effective management of risks that impact its strategic objectives and business plans, IPBC has introduced a comprehensive Risk Management Framework. This framework provides a structured approach to identifying, assessing, managing, and monitoring material risks across the Group.

Key Roles and Responsibilities

The framework outlines specific roles and responsibilities to ensure seamless risk management throughout the organization. The following key roles are responsible for ensuring effective risk management:

  • IPBC and SOE Boards: Oversee and monitor the effectiveness of risk management and internal control systems, ensuring compliance across the Group.
  • Audit and Risk Committee:
    • Implement the Board’s overall risk management approach
    • Review the effectiveness of risk management and internal controls
    • Recommend risk appetite, policy, and guidelines for approval
  • Executive Management:
    • Oversee the establishment and implementation of IPBC’s risk management system
    • Assess its risk resourcing
    • Review trends in the Group’s risk profile
  • SOE Management Committees: Oversee compliance with the Board’s Risk Management Policy, analyze material risks, and report findings to the Executive Management Committee.
  • CFO: Ensure the effective management of all financial and non-financial risks across the Group and provide necessary support to advance the risk management culture.

Risk Rating Matrix

The framework utilizes a risk rating matrix to categorize risks based on their likelihood and impact. This helps in prioritizing risks and allocating resources effectively to manage and mitigate them.

Risk Management Process

IPBC’s risk management process is consistent with AS/NZS ISO 31000:2009, requiring continuous identification, analysis, monitoring, and management of risks. The framework applies this approach to all key business decision-making processes across the Group, including:

  • Strategic planning
  • Business planning and budgeting
  • Acquisitions and divestments
  • Major projects
  • Change initiatives

Risk Management Timelines

The framework provides specific timelines for the risk management process, ensuring that risks are identified, assessed, managed, and monitored in a timely and effective manner. The following timelines are applicable:

  • Risk identification: Quarterly
  • Risk assessment: Semi-annually
  • Risk mitigation and monitoring: Ongoing

Supporting Guidelines and Templates

Appendices to the framework provide supporting guidelines and templates, including:

  • Consequence Descriptors (Appendix A)
  • Likelihood Descriptors (Appendix B)
  • Required Management Actions (Appendix C)
  • Risk Register Template (Appendix D)
  • Risk Action Plan Template (Appendix E)

By implementing this comprehensive Risk Management Framework, IPBC aims to ensure the effective management of material risks and achieve its strategic objectives.