Transurban sees risk management as a critical pillar in its growth and future success.
This means ensuring risk management is taken seriously and carried out in a diligent and sustainable manner in order to reduce potential for harm to all its employees, community and customers.
To achieve this, Transurban has undertaken an 18-month journey to implement an enhanced ERM approach, which is not only aligned to the needs of the business but fully embedded into its strategic planning and decision-making processes.
WHAT A JOURNEY
When defining any journey, it is important to understand your starting point; prior to commencing the ERM programme, the Transurban risk team engaged with all levels of the business (from
the board to front-line employees) to understand their challenges, business plans and market opportunities.
The first step in the process was to define how much risk the business was willing to accept in pursuing opportunities, and what constituted
an unacceptable risk. To this end, risk appetite statements and measures were developed that aligned to the business and strategic priorities. These statements combined the potential risk the firm would seek and tracked actual business performance as it pursued its business activities.
Risk appetite and related tolerances were reviewed and signed o by the executive and board. This ensured its ERM policy, framework and methodology were relevant to the business need. Risk statements were also included in other business policies and procedures, to reinforce its risk appetite and outline an unacceptable level of risk.
At a business level, workshops are held to drive innovation opportunity as part of the risk review cycle. This enables all levels of the business to undertake horizon scanning, seek risks that should be pursued, and to develop action plans to maximise the return or business benefit.
A key consideration has been developing internal capabilities, base knowledge, organisation maturity, and to build a culture that enables risk to be discussed and shared in a transparent and supportive environment. This meant developing the supporting infrastructure of local risk champions and subject matter experts to support the embedding of risk capabilities within the business.
Inward training and education programmes were also developed to provide the grass root skills for those who would ultimately apply the process.
WHAT THE JUDGES SAID
“Good analysis of how risk has transformed within the organisation.”