Approach to risk management
Meridian operates an active programme to ensure ongoing risk management across the Group. The Risk Management Policy has been developed to meet ISO 31000 Risk management – Guidelines and supports Meridian’s Risk Management Framework
The purpose of the Risk Management Policy and Risk Management Framework is to embed within Meridian a consistent and integrated approach to risk management that supports delivery of Meridian’s strategic objectives and operational goals.
Risk management responsibilities
Risk management is ingrained in strategic and operational activities, including business planning, investment analysis, portfolio and project management and day-to-day operations. Meridian adopts a managed approach to risk that sets tolerances for appropriate risk taking depending upon the consequences and likelihood of the risks’ occurrence, and the potential associated benefits or opportunities.
When assessing risk, Meridian considers the material topics outlined in the Intergated Annual Report and potential impact on its business across a number of categories that include:
- People – Including impacts to staff, contractors, suppliers, customers and the public (including public property, communities, iwi and mana whenua)
- Financial – Increased costs, loss of revenue and reduction in value
- Environmental – Impacts on the environment
- Reputational – Events that cause the deterioration of Meridian’s reputation
- Strategic – Events that reduce the ability to deliver Meridian’s strategy
Meridian’s Risk Management Policy outlines specific responsibilities for risk management at Meridian: Meridian Energy Risk Management Policy