Transurban Corporate Report FY25 Governance and risk
Change in threat within FY25
Threat
Trend
Example management responses
Unfavourable changes in the business environment or operating conditions Key assumptions relating to the operating environment (including potential disruption events) and/or budget forecasts may prove to be incorrect. Delivering our major projects to meet agreed outcomes Project complexity and size, project risk allocation, contractor performance or behaviour, combined with ineffective contractor management, and broader industry conditions could lead to a failure to deliver projects on time and within budget, impacting our reputational standing, financial performance and/or future growth opportunities Customer and road safety Failure to effectively manage road infrastructure and response to incidents could impact customer and road safety. Customer safety could also be impacted by an inability to consider the consequence of significant weather events and consequences of climate change.
Continued focus due to current economic conditions.
• Stress testing and scenario analysis reflecting future outlook and economic uncertainties and other potential disruption events • Strategic and emerging risks and mitigations identified and managed as part of the ERM Framework • Ongoing regional and asset traffic analysis supplemented by third party data and/or peer review • Continued review and management of cost base • Continuous financial model review and evaluation • Consideration of extreme and future weather events or land use changes • Due diligence throughout procurement and tender processes • Enhanced project governance framework (including project steering committees, internal audit program and periodic program reviews) • Consistent risk reviews performed to identify and manage risks throughout the project lifecycle • Ongoing proactive focus on relationship with current and potential contractors and suppliers including senior executive engagement with major contractors including stakeholders (including contractors, and government and community partners) • Clarification of project scope, consideration of alternative contracting frameworks and commercial engagement models including risk allocations. • Ongoing contractual management and enhancement of claims management processes • National Transport Research Organisation assessment of the Australian network to determine iRAP safety ratings • MUARC analysis of serious injury crashes on Australian roads • Road Safety Action Plans and related community of practice • Engagement across government agencies, transport, enforcement and road safety • Representation on Australasian College of Road Safety and US Department of Transportation committees • Road safety analytics platform integrates data from across our systems (e.g., near miss data, weather and iRAP) • Development of road safety initiatives, such as Burnley Tunnel pacemaker lights and Express Lane access • Continued focus on emergency response capabilities and delivery of emergency management exercises • Transurban Road Safety Centre at NeuRA research program • Scenario analysis of weather events and their impact on road safety • Engagement on toll reform and road user charging • Contributions to policy discussions through submissions to government inquiries and draft strategies (e.g. active engagement in Australian tax policy and legislation) • Engagement with at all levels of government to better understand policy positions and their potential implications • Monitoring potential changes to stakeholder, government, and regulatory policies, including alignment to ESG recommendations and transition to net zero • Continuous monitoring of Transurban’s regulatory and compliance requirements through the established compliance management system, including automatic notification and escalation of compliance actions and regulatory changes • Compliance working group continues to oversee and report to Board on compliance activities
Challenges continue to be experienced as a result of current economic conditions and risk exposure for the construction industry.
Road incidents and driver behaviour across the broader national road networks in Australia and North America continue to be a focus. These behaviours also have the potential to impact on Transurban assets and other road users.
Changes in government policies or legislative and regulatory environment A change in government policy, law, regulatory interpretations or expectations could impact on the asset portfolio or the ability to deliver the business strategy and potential future growth.
Risk remains a key focus due to uncertainties associated with responses to recent global policy changes. Positive engagement with NSW Government on toll reform.
74
Made with FlippingBook Digital Publishing Software