Arabtec Group and its subsidiaries are acutely aware of the importance of Risk Management that has been highlighted as an important pillar to support the three year strategic plan introduced by the Group CEO in January 2017.
The Group is committed to adopting sound Enterprise Risk Management principles and has chosen to base its process on the commonly accepted ISO 31000 Risk Management standard, in accordance with the best practices of the industry.
Risk Management in Arabtec Group follows the principles and methodology presented in the ISO 31000 standard, depicted in the summary chart below :
Arabtec implements a formalised Four Gate Tender Approval process that aims at better controlling the risks related to its commercial and contractual commitments, and by extension to projects execution.
This mandatory process allows to optimise the commercial costs of the organisation, to support a tender decision making process based on objective risk information and to ensure that contractual commitments are in line with the organisation objectives and its defined risk appetite.
This process allows Arabtec to further secure its strategic, operational and financial objectives, by providing a risk based structured framework for sound commercial and contractual decision making.
The main purpose of the development and implementation by Arabtec Group of a state of the art approach towards risks, across the whole organisation, is to secure its objectives towards:
In addition to ensuring that the Group pursues and materialises the best opportunities in line with its operational and strategic objectives.
Thanks to its Enterprise Risk Management framework, embedded into all its operational and strategic processes, Arabtec Group seeks to effectively and successfully address the risks inherent to its activities.
Human resources management,
Procurement and logistics management and costs,
Subcontractors, suppliers and joint contractors,
Changes in laws and regulations,
Evolution of the economic or tax environment.
Acquisitions and disposals,
Partnerships and participations.
Payments and solvency,
Liquidities and cash management,
Market risk (interest rates, currencies and commodities).
Regulatory compliance, ethics and fraud.
Environment economic and regulatory context,
Weather or natural disasters,
Sustainability and safety.
Protection of data,
Continuity of operations,