Enhancing Business Resilience
Enterprise Risk Management at KBR
KBR’s commitment to sustainability is about doing what is right for our planet, people, communities and business. Enterprise Risk Management, one of KBR’s 10 Sustainability Pillars, is key to driving KBR to sustainable business growth.
Every decision taken in the pursuit of our business objectives has risks. When managed appropriately, those risks can expose strategic opportunities and lead to successful, anticipated outcomes for our business, employees, customers and shareholders.
“Our vision is to integrate enterprise risk management at every level of KBR’s global business. By entrenching these principles and practices in our culture and operations, we will be able to consistently visualize the entire risk landscape, mitigate threats, capitalize on opportunities, and create value and predictable outcomes.”
Eileen Akerson, Executive Vice President and General Counsel
What is Enterprise Risk Management?
Enterprise Risk Management (ERM) is a synthesis of tools and practices, combined with culture and capabilities, that businesses use to inform strategy, manage risks and opportunities, and deliver sustainable value.
The KBR ERM Framework is consistently implemented at all levels, from projects to the board of directors, across the entire global business. KBR’s modernized approach delivers real-time visibility of the business’s changing risk profile, supports strategy decisions and adjustments, includes value-added communications to stakeholders, and uses reliable data to align areas of focus.
The framework identifies, assesses, analyzes, monitors and evaluates critical risks and opportunities. By minimizing threats and maximizing opportunities, ERM creates and protects value while driving KBR to predictable outcomes.
How does ERM support KBR’s strategy?
KBR’s success and shareholder value drive the company strategy and are dependent on the organization’s ability to anticipate and respond to complex and ever-changing risks in existing and future operating environments.
The KBR ERM Framework enables proactive risk management through: • Earlier and more explicit anticipation of risks • Identification and pursuit of new opportunities in a more considered manner • Quick, consistent response to deviations in internal or external factors • Comprehensive, consistent reporting of risk across the portfolio
This approach facilitates informed, transparent and defensible strategy decisions, while also enabling greater certainty in project outcomes for our clients and business results for KBR. Addressing, managing and monitoring business risks also helps strengthen KBR’s reputation as a responsible economic actor with all stakeholders.
Why is ERM important?
Employee
ERM helps create a more resilient, sustainable future for KBR. For employees, this equates to job security, career development opportunities and the potential for new employment experiences or roles on new and varied projects.
Board of Directors
Under their corporate governance responsibilities, boards have an obligation to address risks that threaten the ability of a corporation to deliver sustainable growth, and to oversee management of the most critical among them.
To meet its oversight obligations, the KBR Board of Directors requires a reliable, consistent, fact-based risk process, and the KBR ERM Framework delivers. Being aware of KBR’s enterprise risks and opportunities, and the actions being taken to address them, enables the board to demonstrate its commitment to risk oversight and reputational protection.
Investors and Shareholders
Investors and shareholders have traditionally wanted to invest in businesses that provide them high financial returns. However, governance and sustainability have escalated to become mainstream topics and these external stakeholders are increasingly considering a wider range of indicators, including business model resilience, when making their investment decisions.
ERM is a fundamental contributor to sustainable business growth and our approach demonstrates the high value we place on being a sustainable, resilient business, which makes KBR an attractive investment opportunity.
Who does ERM at KBR?
Everyone! Each individual employee has the visibility, capability and empowerment to identify risks and opportunities through the KBR ERM Framework. If you’re interested in learning more about ERM and how it fits into KBR’s business strategy and sustainability goals, visit the online portal or visit the ERM section on the internal Zero Harm site.
