NEA’s Enterprise Risk Management Programme
Recognising the importance of effective risk management in enhancing corporate governance and strategic planning, NEA established an Enterprise Risk Management (ERM) programme to manage risks and opportunities in a structured, integrated and effective manner.
The ERM programme enables NEA to proactively identify, assess, prioritise, treat and monitor our key strategic and operational risks on an ongoing basis. The programme enhances:
- Risk Awareness, by providing an integrated view of the combined impact of different risks on the organisation, thereby eliminating silo thinking in risk management
- Risk Ownership, by providing a formalised structure to assign accountability for key risks, mitigating measures and treatment plans
- Proactive Risk Management, by providing a structured and robust management process to minimise upstream risks, based on both top-down and bottom-up risk reviews
NEA takes a precautionary approach to managing our risks and closely monitors them, as well as identifies new risks and opportunities. This is to ensure that NEA’s corporate sustainability efforts address all developing trends and risks.
Enterprise Risk Management Framework
In planning ERM activities, NEA is guided by an ERM framework that features three thrusts:
The Enterprise Risk and Safety Steering Committee (ERSSC) is responsible for overseeing risk management in NEA, and is chaired by NEA’s Deputy CEO (Planning, Corporate and Technology) in his capacity as NEA’s Chief Risk Officer.
The ERSSC meets every quarter to review key strategic and operational risks facing NEA and to ensure that pertinent risks are prioritised and adequately addressed. The ERSSC also reviews the effectiveness of these risk treatment plans, as well as studies trends and emerging issues that may impact the risks confronting NEA.
At the NEA Management Meeting, ERSSC reports key risk management issues and recommendations to the CEO. ERSSC also reports to the Audit Committee and NEA Board on the ERM programme, ERM initiatives and key strategic risks which NEA faces. ERSSC then obtains the Board’s guidance on any further development of the ERM programme.
Risk Owners are assigned the task of identifying, assessing, and monitoring key strategic and operational risks, and treatment plans to mitigate those risks. As part of the risk management process, environmental scans are conducted on material issues that may impact the achievement of strategic objectives in the Strategy Map. Meanwhile, Process Owners provide risk content (root causes, consequences and controls), and implement and monitor the risk treatment plans.
Risk Materiality Assessment
The materiality assessment is part of our Enterprise Risk Management framework in the identification and assessment of Environment, Social and Governance (ESG) risks and opportunities. The ESG risks, challenges and opportunities for each of the material issues are summarised here