Supporting the Delivery of Long-term
Sustainable Returns for Shareholders and to Safeguard the Interests
of Customers and Employees
Group Risk Management Process
We operate a risk assessment process to identify and assess the
risks affecting business performance that requires each business
division to identify the key risks to its plans, its likelihood and
impact and the actions taken to manage those risks.
Divisional risk registers are reviewed by their respective
management teams and the consolidated risk profile for the larger
VT Group is challenged by the Proxy Board.
Our key risk areas are:
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Contract Performance Management
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Dependence On Key People
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Growth Strategy and Major Bid Pricing
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Dependence On Government Contracts
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Changes In Laws and Regulations
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Joint Ventures
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Environmental, Health and Safety Liabilities
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Financial Risk and Capital Management
Contract Performance Management
Our business is challenged by long-term contracts management and
maintaining expected returns while focused on customer
satisfaction. As a result, we hold regular project
appraisals, maintain continued dialogue with the customer and apply
our Project Lifecycle Framework to contracts across VT Group.
All major contracts in our business divisions have a risk
identification and management process in place. Significant
risks are considered for inclusion in divisional risk
registers.
Dependence on Key People
We succeed by putting the right talent in the right positions,
empowering them to collaborate with the customer and responding
quickly to their needs. Our people are the key to our ability
to achieve planned strategic growth. We actively engage our
people in communication forums and employee opinion surveys to
obtain a better understanding of the range of issues that
contribute to the level of staff satisfaction.
Growth Strategy & Major Bid Pricing
VT Group's expansion encompasses organic growth, acquisitions
and new strategic markets areas. Acquisitions and entry into
new markets bring an extra element of risk as these may involve
activities not currently carried out by VT Group. We
undertake extensive due diligence, carefully consider the company's
ability to manage and fund new activities through a rigorous bid
acceptance process and mandate that all such activities receive
Proxy Board approval.
Dependence on Government Contracts
Our work with government authorities makes us susceptible to
changes in government policy, budget allocations and the changing
political environment. As a result, our business operating
functions have reduced these redundancies and take advantage of
cost efficiencies, while holding true to our core values-people,
partnerships and performance. We have also diversified our
service offerings into the commercial sector and overseas.
Changes in Laws & Regulations
VT Group is subject to strict, complex laws and regulations that
are subject to change, including state aid, procurement, export
control, taxation and environmental health and safety laws.
By establishing formal compliance policies, employing
suitably qualified individuals and retaining appropriate
professional advisors, we mitigate these risks.
Joint Venture
VT Group has a number of joint venture operations. Given their
importance to the company, the boards of these joint ventures
include executive directors and members of the VT Group executive
committee responsible for representing VT Group's interests.
These individuals maintain regular dialogue with key
stakeholders, actively engage with the entities and gain
operational involvement where appropriate.
Environmental, Health & Safety
Liabilities
We are exposed to risks associated with the contamination of
current and former work sites, non-compliance with environmental,
health and safety law and personal injury claims resulting from
injuries sustained at work, including historical exposures to
asbestos. VT Group is fully committed to maintaining a
framework of company-wide policies and procedures to minimize these
risks.
Financial Risk & Capital Management
VT Group has a number of policies to protect against financial
and capital management risk, covering liquidity, credit, interest
rates, foreign currency and market price risk. To learn more
about our Financial Risk & Capital Management, click here.