Risk Assessment and Governance
SABIC continues pursuing its strategic goals to maximize shareholder value through taking calculated risks that are predefined by the organization’s Risk Tolerance Framework. SABIC does not tolerate any scenarios or events leading to safety and security incidents that threaten the well-being of its employees, contractors, the public and/or impact the environment. SABIC does not tolerate any scenarios or events in relation to integrity, ethical/regulatory non– compliance and Intellectual Property breach and/or infringement.
SABIC has a strong risk culture; we consider all our employees custodians of this culture and entrust them in adhering to our standards and culture in executing SABIC’s strategy.
We have established a risk management policy and an Integrated Governance system (as shown in the diagram below) to effectively identify, understand, and manage the risks facing the company and affecting our business performance. We are also leveraging opportunities in pursuing our objectives to meet our strategic goals.
All SABIC’s functions regularly provide coordinated reports to the Executive Risk Management Committee. The SABIC Board of Directors, as well as the Risk and Sustainability Board Committee, oversee the activities of the Enterprise Risk and Data Management department in assessing key business risks for the company.
The responsibility of implementing our risk management policy rests with the Chief Executive Officer, whilst the responsibility for monitoring the implementation of the risk policy lies with the Board of Directors and is supported by the Risk and Sustainability Board Committee. The SABIC Enterprise Risk Management team (ERM) reports a detailed assessment on the risks facing the company. The Risk and Sustainability Committee monitors these reports on a regular basis and makes appropriate recommendations to the Board of Directors on the efficacy of measures taken to minimize the impact of all risks.
In principle, we are exposed to inherent risk factors that limit our ability to achieve our strategic, operational and financial objectives.
SABIC does not tolerate any scenarios or events leading to safety and security incidents that threaten the well-being of its employees, contractors, and the public.