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RISK MANAGEMENT
MTQ Corporat ion Limi ted Annual Repor t 2012/13 14
The Group has expanded significantly over the last two
years in terms of size and geographic coverage. With the
start-up investment in Bahrain and acquisitions of the
Premier Group and Neptune, the Group has operations
covering the Middle East, the United Kingdom, Australia
and Singapore, servicing operators and equipment
manufacturers in the energy industry. Although
expansion inevitably adds complexity to the risks profile
of the Group, the global nature of the energy industry is
such that the industrial practices and the customers the
Group services are largely the same.
The Group adopts a bottom-up approach for the risk
management process to address financial, operational
and compliance risks. Business units have primary
responsibility and accountability to identify, evaluate,
manage and monitor risks that may have impact on their
operations. Appropriate risk management frameworks
that are adopted form integral parts of the business
operations. Risks identified are regularly reviewed
and monitored by the respective management teams
at management meetings or at forums specifically
convened (e.g. risk management committee, work
health and safety committee). A list of Key Risks which
are considered critical to the overall Group operations
has been identified and is being closely monitored and
managed at every level of the organisations within the
Group where appropriate. It is through this approach
that the Board of Directors and the Audit Committee are
given the assurance that management has implemented
adequate controls to safeguard the Group’s assets and
enhance shareholders’ value.
KEY RISKS BEING MANAGED
Listed below are the critical risks which are being closely managed.
Financial Risks Operational Risks Compliance Risks
Liquidity Risk Concentration of Customers Industrial Accreditation
Credit Risk Work Health and Safety Listing, Legal and Tax Regulations
Foreign Currency Risk Business Continuity
Following the acquisition of Neptune in the fourth
quarter of FY2013, the Group undertook a review of
the insurance programs of the enlarged Group with the
assistance of external consultants and brokers. The
review covered the insurable risks which the Group’s
operations are exposed to, as well as the adequacy and
the structure of the programs. The findings from this
review has facilitated a more comprehensive and cost
effective insurance program for the Group.
The Group’s Delegation of Authority arrangements
are also reviewed regularly in order to achieve a more
systematic structure for reviews and authorisations
before commitments, obligations and payments are
being executed or entered into.
The internal risk management process is augmented
by independent audits conducted by external auditors
covering different aspects of financial, operational and
compliance risk management. In addition to the annual
statutory audit conducted by the external auditors,
internal audits conducted in accordance with the IIA
standards are also performed by external professional
firms for some of the key operating units. There are
also regular audits conducted for industrial accreditation
as well as customer quality controls performed by
independent parties to ensure compliance of the various
regulations, standards and guidelines.