Governance Case Study
ENTERPRISE RISK MANAGEMENT
Ausenco Pty Limited is a global, diversified engineering, construction and project management company providing services in Minerals & Metals, Process Infrastructure, Environment & Sustainability and Oil & Gas. Founded in 1991 and headquartered in Brisbane, Ausenco has 26 offices in 14 countries. In 2008, the business was floated on the Australian Stock Exchange and in 2016 it was privatized after the majority of shares were acquired by Resource Capital Fund.
Ausenco has a long history of successfully managing business risks particularly those present within client projects. However, there was no Enterprise Risk Management (ERM) framework in place to summarise and escalate key risk issues to the Board.
A leading risk management firm was engaged to facilitate the ERM processes with management and the Board. This included identifying and prioritising enterprise risks, evaluating the effectiveness of current controls and developing new control processes.
Management also developed a framework to explain how individual risks were being managed and escalated through the various management layers.
The newly implemented ERM provided a more structured framework for management to demonstrate how key enterprise and specific risks were being managed.
Rick played the lead role in implementing ERM, updating the Audit and Risk Management Committee and the Board on a regular basis. The Board now has a better understanding and level of comfort on risk management in the Group.
Ausenco’s insurers have also duly noted that ERM has demonstrated measurably more effective risk management which minimises insurance premiums.
George Lloyd, Chairman Ausenco Pty Limited