2024 Corporate Report

Governance and risk

Risk management

Risk appetite Our Risk Appetite Statement, linked to our organisational strategy, outlines the level of risk we are willing to accept, tolerate or avoid in the pursuit of our strategic objectives. This provides a balanced approach to growth, with risk management aligned with our overall purpose and our stakeholder expectations. Our Risk Appetite Statement is critical in guiding our decision-making attitudes and behaviours – it is pivotal in navigating times of uncertainty and also allows us to capitalise on opportunities. To confirm we are operating within our risk appetite thresholds, we have linked our Risk Appetite Statement with our Key Risk Indicators (KRIs) and Key Performance Indicators (KPIs). Our KRIs and KPIs help us measure our risk management and current business performance against financial and non- financial risk metrics. We track our performance against our risk appetite and this is presented to the Board to provide early insights into our risk exposures and to enable informed decision making. Across the business, and at all levels of management, our teams regularly review our business activities in conjunction with both local and global operating environments to identify risks that have potential to impact or disrupt Transurban or our stakeholders. Strategies to eliminate or mitigate these exposures – as well as contingency plans – are developed and implemented to manage any negative risk outcomes. Emerging threats and opportunities Emerging risks are new or evolving threats that have the potential to materially impact upon our business. We manage these risks by performing continuous horizon scanning and monitoring for emerging themes. Scenario planning and exercises are then undertaken to aid the identification of adaptive strategies to ensure timely identification and mitigation of emerging risks. Transurban’s strategy is also underpinned by strategic business decisions that may create or impact threats and opportunities for Transurban. This means risk management is also crucial in identifying these positive risk opportunities that can be leveraged to enhance business performance and achieve strategic objectives. Our rigorous risk assessments, scenario analysis and strategic planning has identified development opportunities in our existing markets, potential growth opportunities in North America and opportunities for new transport and mobility solutions that are underpinned by evolving technology.

Transurban is committed to building a risk-aware culture, supported by a tailored, practical, and integrated approach to identifying and managing uncertainty in our strategy, operations, and the global environment. An organisation-wide, integrated and proactive risk approach is essential for our resilience, sustainability, and for creating value and growth. By anticipating and understanding current and future uncertainties associated with our operating environment, we can mitigate threats and pursue business opportunities that benefit all our stakeholders.

Our Enterprise Risk Management (ERM) Framework sets out principles that govern our approach to managing risk, and provides guidance on the proactive identification of risks (both threats and opportunities) to our business endeavors. The framework supports informed strategic decision making, operational efficiency, financial stability, regulatory compliance and organisational resilience, while also identifying opportunities for growth and innovation. The ERM Framework is integrated with related business processes and policies to ensure a business-wide consideration of our risks and to enable us to understand and address their potential consequences. Example policies include our: Code of Conduct; Anti Bribery, Corruption and Fraud Policy; Conflicts

Management Policy; Compliance Framework and our Sustainability Strategy. In addition, the framework is also integrated into other teams’ business activities and procedures including: health, safety and environment; internal audit; tax; treasury; procurement; business resilience; and insurance. Overseen by our Board and Audit and Risk Committee (ARC), and managed by our CEO, Executive Committee and senior management, the ERM Framework provides a systematic approach to ensuring key risks are promptly identified, evaluated, and communicated. This enables us to effectively escalate and respond to risks which may materially impact our business, customers or stakeholders.

Figure 24: Transurban ERM process

1. Risk appetite Confirm the boundaries and understand our performance

2. Plan Set the context

3. Identify What are the risks

Horizon scanning

Knowledge sharing

4. Assess Analyse and evaluate

5. Manage Address the risks

8. Audit and assurance Address the risks

79

Made with FlippingBook Digital Publishing Software