KBR Enterprise Risk Management - PR-GL-KBR-ERM-0001
Risk management is one of the social pillars of sustainability in KBR. It is key to driving KBR to sustainable business growth. A sustainable, growing business delivers value to our employees, customers, and shareholders. KBR has established an enterprise risk management (or ERM) framework for managing risks consistently throughout the KBR organization
The purpose of ERM is to “enhance an enterprise’s resilience; the ability to anticipate and respond to change and how that change could impact performance and necessitate a shift in strategy” (AIPCA Enterprise Risk Management; Integrating with Strategy and Performance, 2017). The aim of this Procedure is to outline the ERM Framework to be implemented within KBR, from strategic decision-making to execution, to ensure:
- Risks can be identified, quantified and managed in an effective, consistent manner
- Appropriate business risk provisions can be developed in relation to cost, schedule, commercial terms, and other required objectives.
- Threats can be proactively managed throughout operation to reduce the probability of occurrence or to minimize their impact
- Opportunities can be proactively managed to ensure maximum benefit can be realized
- The changing risk profile can be monitored and managed in an ongoing manner throughout operation
- Strategy decisions, adjustments, and communications to stakeholders, have a common focus based on a consistent framework with the aim of staying aware of changing influences increasing positive outcomes.
- Throughout this framework the term ‘Risk’ is used to cover both threats and opportunities.
- Where this is not appropriate specific direction is given for both situations.
KBR ERM