TAM uses a set of four well-defined processes to assess its risks, opportunities and material issues:
- Key risks and mitigating actions are identified and assessed using an Enterprise-wide Risk Management (ERM) process.
- The Group takes into account the views and concerns of a wide range of stakeholders
- As part of the integrated reporting process, the Group conducts comprehensive interviews with key management and external stakeholders
- Material sustainability issues are assessed and prioritised according to the Global Reporting Initiative (GRI) Standards
Our appetite for risk is reflected in our company strategy, DNA, goals and targets.
Risk appetite is defined as the amount of risk we are willing to take in pursuit of our strategic objectives and the amount of risk we are capable of taking considering our financial and operational capabilities.
Our risk management motto of “making it less risky to take risk” implies that we have precise and effective risk mitigating strategies to continually reduce risk to an acceptable level. We believe we are inherently more risk averse than many of our peers.
Risk appetite is set in each of our major risk areas of our group goals and targets, such as safety and health, production, growth and productivity, environment, human resources as well as our legal and social licences to operate.
Risk appetite is reviewed by management and adjusted annually as part of our risk management plan. It is then reviewed and approved by the Risk Committee. Management’s mandate is to take risks within these levels.