Lundin Petroleum’s risk management approach is designed to identify and manage the most material risks for the business, from health, safety and environmental protection to the capacity to achieve short and long-term business objectives to financial risks relating to a volatile oil price environment and accurate financial reporting.
A standardised risk management methodology is used to perform quantitative and qualitative risk assessments and to prioritise activities and resources which enables the Company to deal effectively with any potential threats and opportunities. The risk assessment starts with an understanding of events in terms of severity and probability of an incident occurring that takes context and uncertainty into consideration. Risks are then rated to indicate the appropriate level of attention from management, including identification of corresponding opportunities.
Lundin Petroleum’s risk management process is driven by the Board to encourage foresight, pro-activeness and informed decision-making. Management is responsible for establishing risk management processes and for reviewing and measuring the effectiveness of mitigation efforts and local management has the day-to-day responsibility for implementing the systems and monitoring their impact.