Risk management
Risk management in DNO is based on the principle that risk management is an integral part of all business activities and is a continuous process. Every senior manager is responsible for monitoring and managing risk within his/hers business area, and an evaluation of business risk shall be carried out prior to any major decision in the Company.
The Company has formalized a risk management policy with identification and assessment of risks, including risk rating and mitigation, corrective measures and establishment of barriers. There is a centralized function with responsibility of analyzing and evaluating the Group’s total risk exposure. This function is also responsible for facilitating and streamlining the process across countries and business areas, in order to have unified and standardized approach to the risk subject.
Reporting and reviewing is done on a regular basis to corporate management and the Board. In addition, the audit committee plays an important role in reviewing and follow-up of the risk areas. The main risk factors resulting from the risk reviews are underlined and focused in the coming year’s audit plan.
For internal control purposes, the Group has established policies and procedures in an integrated Business Management System. The aim is to increase quality in all processes and strengthen the control environment in the Company. The Company also has an internal audit function with annual audits of the main business areas.
For more information about the risk management system, please refer to the Annual Report.