Process
Our Enterprise Risk Management process is driven by our Corporate Governance Officer (a senior member of our internal legal department), in cooperation with the Company’s Director of Internal Audit, risk management department, CFO and other members of senior management. Risks are assessed and categorized in order to put in place appropriate mitigation plans. On an annual basis, we undergo a rigorous Enterprise Risk Management process during which the leaders of each business unit complete a survey regarding risk and engage in an interactive discussion to probe deeply into each business’ risks, the likelihood that the risk will occur, the velocity at which the risk would become manifest, and most importantly, the remedial plans in place in the event the risk arises. In this latter regard, each location has a disaster response workbook to use as an immediate guide in the event that a hazard occurs.
Given the presence and impact of the COVID-19 pandemic, a custom created risk assessment and mitigation tool was implemented to aid in planning for pandemic-related contingencies.
Oversight
The results of this ERM process are consolidated and presented to the Board of Directors annually for its review, discussion, and guidance. In addition, the Audit Committee receives reports, on a quarterly basis, regarding any additional risks that have been identified and the measures that are being taken. The Audit Committee also receives reports on a regularly scheduled quarterly basis, presented by our Corporate Governance Officer and our Chief Legal Officer, regarding material litigation, legal loss contingencies and calls received on our whistleblower hotline. The Board also is regularly informed through the Audit Committee’s reports and through direct communications from senior management.
