Governance and risk
Directors' Report
Financial statements
Assurance statements
Security holder information
Introduction Business performance Stakeholders Sustainability
Contents
Risk management practice Transurban's risk process is designed to embed risk identification and management into all business activities, following a systematic approach: • Risk identification: Teams review business activities and both local and global operating environments to identify risks that could impact Transurban or its stakeholders. The process involves analysing and evaluating identified risks. • Risk assessments: Once identified, risks are analysed and evaluated to understand their potential financial, health and safety, environmental, business disruption, legal, and reputational consequences, from both an unmanaged and managed perspective. • Risk mitigation: This assessment informs the prioritisation of management responses and the development of treatment plans to address likelihood and consequences. • Monitor and review: Ongoing monitoring, reporting and escalation is then undertaken to provide assurance that the risks are being addressed and that appropriate risk treatment plans are in place. • Communication: To support continuous improvement and shared risk intelligence, all identified risks are recorded and managed within a common enterprise system. Risk intelligence dashboards are utilised to disseminate information across the business. • Current risks: These are risks that could impact Transurban immediately or in the near future. They are identified through regular reviews of business activities, and strategies are developed to either eliminate or mitigate exposures, alongside contingency plans. Key identified risks include geopolitical volatility, litigation challenges, shifts in government policies, cyber security and information protection, project delivery challenges, customer and road safety concerns, unfavourable changes in the macroeconomic and business environment, employee and contractor safety, balance sheet management, tax legislation developments and meeting regulatory and compliance obligations. • Emerging risks (threats and opportunities): Defined as new or evolving disruptions with the potential for material impact, often driven by external influences. Transurban manages these through continuous horizon scanning, analysis of business metrics, and monitoring of emerging themes. Scenario planning and exercises are conducted to identify adaptive strategies and support timely management of these risks. Our integrated approach to risk management spans our operational, project, business and strategic activities, linking our risk activities to our internal processes such as health, safety, sustainability and environment, internal audit and compliance. Our risk management processes and controls may not always be fully effective in preventing or detecting issues which could impact our customers, operations, financial position or stakeholders. In order to manage this, Transurban's risk process is designed to embed ongoing risk identification and management into all business activities, following a systematic and continuous improvement approach.
Business-wide insights Transurban leverages risk intelligence dashboards to distribute risk management information throughout the business, supporting decision-making and strategic planning. This approach fosters consistent risk communications and understanding across all levels of the organisation, promoting a culture of transparency and enhancing risk performance maturity across operations and projects. The Risk team actively provides ongoing support and training to further develop risk capabilities within the company.
Managing and responding to emerging threats and opportunities Geopolitical
In response to an increasingly volatile external environment, Transurban continues to assess the risks and opportunities arising from global geopolitical impacts and the changing domestic landscape. Global events such as the conflict in the Middle East have contributed to market volatility, supply chain disruptions and broader economic uncertainties. In Australia, challenging economic conditions and shifting community and political sentiment will continue to influence policy and regulatory changes. These factors could impact Transurban’s existing operations, financial performance, and our ability to pursue future growth opportunities. While business performance metrics remain within risk appetite for 2026, these complex external developments present forward-looking risks that the business is proactively managing. As an example, in relation to the Middle East conflict management has implemented a robust response framework underpinned by scenario analysis, evaluating a range of conflict outcomes from a short-term, contained event to a prolonged global escalation. Proactive mitigations include regular cross functional executive oversight, enhanced monitoring of external signals, and direct engagement with governments, industry bodies and suppliers to safeguard operations. Concurrently, our financial planning for FY27 is being stress-tested against these scenarios, and we are maintaining active engagement with investors and partners, including timely and transparent market updates as the situation evolves. Artificial intelligence In response to the rapid technological advancements in artificial intelligence (AI), the organisation is actively assessing the associated opportunities and emerging risks. The adoption of AI presents significant opportunities to enhance operational efficiency, deliver superior customer experiences, and improve safety outcomes. The increasing sophistication of AI models also introduces risks, particularly in the realm of cybersecurity and AI governance. Proactive risk management is underway, focusing on strengthening cyber resilience fundamentals and evolving AI governance and accountability frameworks proportionate to the threat environment. ¢
81
Made with FlippingBook Digital Publishing Software