At the corporate level, we demand the same high standards of integrity that we expect from our employees on shore and at sea. Transparent reporting by the Executive Management and regular, detailed reviews by an International Board of Directors are part of an established risk management framework that ensure good governance at the highest levels of leadership.
BW LPG strives to provide competitive risk-adjusted returns to shareholders. Our Enterprise Risk Management (ERM) is based on the principles of the ISO 31000 and the Committee of Sponsoring Organisations’ (COSO) ERM Framework. Our risk management process begins with a risk register, where all possible risks are considered and ranked according to probablity and impact to business if realised. Identified risks are then analysed to explore possible mitigation and improvement opportunities, before decisions are made.
We regularly review our risk framework, policy and register to ensure relevant processes and effective mitigation.
Aligning strategy and performance with vision, mission and values
Increasing the likelihood of achieving business objectives
Improving the identification of opportunities and threats
Ensuring continued compliance with relevant legal and regulatory requirements and international norms
Protecting and advancing stakeholder confidence and trust
Aligning strategy and performance with vision, mission and core values
Increase the likelihood of achieving business objectives
Improve the identification of opportunities and threats
Comply with relevant legal and regulatory requirements and international norms
Improve stakeholder confidence and trust
Risks related to markets, countries, services and products, or from customers.
They are addressed through business strategies which are reviewed annually with our Board of Directors. Our Directors deliberate and provide inputs on Executive Management’s assessment of strategic and external risks, and approve corresponding strategies.
The Executive Management ensures that the intended and actual business direction, changes in markets, customers’ expectations and requirements are reflected in corporate strategic planning.
Risks associated with ethical behaviors. They involve employees and third parties or partners on behalf of BW LPG with access to sensitive information.
These risks are also related to compliance with laws and regulations, including environmental regulations, sanctions and anti-bribery laws.
These risks are managed through regular monitoring and mandatory awareness training, compliance reviews, legal due diligence, and internal audit checks.
Risks related to events occurring during planning and execution of business operations, involving for example, cargo loss or damage, counterparty defaults, asset loss or damage, crew injury, or environmental damage.
Control measures are incorporated in operations and insurance planning, with ongoing monitoring during execution. Incidents and near misses are reviewed in order to identify root causes and implement corrective actions.
Risks related to the unpredictability of financial markets and ways to minimise potential adverse impact on financial performance.
Where applicable, we use financial instruments such as interest rate swaps, forex forward contracts and bunker swaps to hedge certain financial risk exposures.
We avoid speculation and risk management tools which may create new exposures. Executive Management handles our financial risk with guidance and input from our Board of Directors.