As a company, we understand that we need to take calculated risks in order to successfully reach our goals. To decrease and manage risks we focus on building competence, sustained training systems and tools.
Operating in the Middle East and North Africa influences both our sustainability approach and our risk and perspectives for opportunity. Today’s heightened environmental and social awareness emphasizes our need to operate in accordance with responsible, ethical, sound business practices.
Our CR approach and Policy, our Risk Management Policy and our Ethical Framework are all documented in our Business Management System (BMS) and made available to all DNO personnel via our Intranet.
DNO believes if properly managed, every risk factor also constitutes a possibility. This is perhaps even more evident within the CR field, where failure to take stakeholders interests into account may lead to critical delays and more costly operations.
Identification and management of CR-Risks
For us at DNO, CR-issues are essential to risk management. We see a clear connection between the effective, economical running of our operations on one hand, whilst still focusing on human rights, labour standards (especially in the supply chain), carefully evaluating and managing corruption challenges and minimizing our environmental footprint on the other.
In addition to being a cost-saving mechanism, CR risk management also enhances the good will of DNO in the communities in which we operate. A comprehensive presentation of risks in general, is further explained in the QHSE section, and management systems under Corporate Governance.
Strategic CR-Risks
DNO’s future production depends on our ability to renew our portfolio and becoming more competitive when accessing investment opportunities. Furthermore, stringent regulation could result in decreased access to opportunities. From a CR perspective we regard the following areas as having particularly impact on our future growth:
- Climate change and carbon pricing – climate change and carbon pricing policies could result in higher costs and reduction in future revenue and strategic growth opportunities
- Ethical misconduct and non-compliance – ethical misconduct or breaches of applicable laws by our employees, partners or agents, could be damaging to our reputation and shareholder value
- Safety and environmental risks – the nature of our operations exposes us to a wide range of significant health, safety, security and environmental risks
- Transportation – all modes of transportation of hydrocarbons involve inherent and significant risks
- Security – hostile activities against our staff and activities could cause harm to people and disrupt our operations
- Business continuity and disaster recovery – we must be able to recover quickly and effectively from any disruption or incident, as failure to do so could adversely affect our business and operations
- Crisis management – crisis management plans are essential to responding effectively to emergencies and to avoiding any potentially severe disruption in our business and operations
- People and capability – successful recruitment and development of staff is central to our plans
- We develop, maintain and monitor our systems continuously in order to reduce or eliminate these risks.