Homework topic: Ethical Behavior, Role of Senior Executives / Board, Assessing Performance and Remuneration of Directors and Senior Executives
You are the Company Secretary of a large UK multinational company operating in the energy sector. Your company has operations in 25 different countries, some of which are developing economies, and it has raised debt finance, as well as equity finance, in 15 of these countries. You are aware that there have been protests from environmental lobby groups in several areas regarding oil pipelines. There have also been demonstrations about the impact of operations on local communities.
Your company has an internal audit committee, an audit committee, and a reasonably well-developed system of internal control loosely structured around the Turnbull Report's recommendations. However, the board has decided that perhaps it should form a new committee, a 'risk committee', which will deal with risk management and internal control specifically.
Accordingly, the board has asked you to prepare a briefing paper which summarizes the main risks facing the business at present
1. You have to classify internal and external risk
2. Analyze the risk assessment as the relative importance of these risks to the business, to highlight where the primary exposures are likely to be.