Content2011 - PETRONAS Gas Berhad

Risk management is fi rmly embedded in the Company’s management
system. It is the Company’s policy to adopt an effective and progressive
enterprise risk management system to identify, analyse, appraise and
monitor the risks facing the Company and to take specifi c measures to
mitigate the risks.
The Company, through its Risk Management Department (RMD),
provides quarterly updates to the Board Audit Committee (BAC) in
the form of the Enterprise Risk Report (ERR) which reports on the
Company’s risk profi le and status of risk mitigation implementation
i.e. event mitigation, risk management framework implementation
and risk initiatives. The detailed risk events, risk rating as well as the
status updates of the mitigation actions are updated in the Company’s
INTERISK system.
event MItIGAtIOn
Detailed risk events arising from PGB’s business, together with existing
controls and risk levels are discussed and endorsed by the BAC together
with the appropriate risk mitigations to address the risks. The risk
mitigations identifi ed are monitored for completion and the resultant
residual risks are determined to reduce the risks to an acceptable level
as endorsed by the BAC.
In addition, for new business ventures, risk assessments are also
conducted and reported as part of the business development proposal
to Management.
121 annual report 2011
rISk MAnAGeMent frAMeWOrk IMpleMentAtIOn
Project Risk
The Company continues to implement Project Risk Management
processes on its critical projects in line with the PETRONAS Project
Management System (PPMS) requirements. All information relating to
project risk management activities, e.g. risk assessments, independent
reviews and lessons learnt, are captured in the Project Risk Management
(PRisMa) system to enable effi cient monitoring and reporting.
Project Risk Management reports are submitted to the relevant heads
of divisions together with the mitigation plans to eliminate or reduce
risk exposures identifi ed. During the year, Project Risk Reports were
also generated by RMD as an independent monthly reporting to the
General Manager of Technical and Facilities Development Division.
The Project Risk Reports were also incorporated into the ERR submitted
to BAC.
During the year, the project risk assessment facilitator pool was reviewed
to ensure the effectiveness of the facilitators. The selected facilitators
underwent a Project Risk Assessment Facilitator Training which was
conducted in two separate sessions during the year to develop and
enhance the capability of the facilitators to assist in the project risk
management implementation in PGB.
It is the Company’s policy to adopt an effective
and progressive enterprise risk management system
to identify, analyse, appraise and monitor the risks
facing the Company and to take specifi c measures
to mitigate the risks.