Internal risk management and control systems

The internal risk management and control systems are based on the principles of effective management control and tailored to the day-to-day working environment in which Boskalis operates worldwide.

Given the hands-on nature of the company and its short lines of communication, three factors are important in the assessment and evaluation of the internal risk management and control practices and systems at Boskalis:

1) With regard to daily operations, an extensive framework of quality assurance rules, procedures and systems, that include clear guidelines for responsibilities, authorization and risk control, forms the backbone of operational risk management and control. In addition to audits by external agencies, Boskalis also performs regular internal audits under the auspices of the SHE-Q department. Reports about these audits are a regular item on the agenda during meetings of the Board of Management with the business unit managers.

2) The daily management of the Boskalis organization involves clear responsibilities and short, clear lines of command that are defined unambiguously. Both competition and project implementation require speed, knowledge, and decisiveness. Daily management is hands-on.

3) The progress and development of the operating results and the company’s financial position, as well as operational and financial risks, are monitored by means of structured periodical reporting, analysis of the financial results, and performance reviews at senior management level.

For a detailed description of the internal risk management and control systems at Boskalis, see the Corporate Governance chapter in the 2009 Annual Report.