Fundamentals of Risk Management

PART FIvE FURTHER READINg
ASIS SPC.1-2009 Organisational Resilience: Security, Preparedness and Continuity 
Management Systems, 
www.asisonline.org
Financial Reporting Council (2014) Guidance on Risk Management, Internal 
Control and Related Financial and Business Reporting, 
www.frc.org.uk
Hopkin, P (2013) Risk Management (Strategic Success), 
www.koganpage.com
Institute of Risk Management (2010) A Structured Approach to Enterprise Risk 
Management (ERM) and the Requirements of ISO 31000, 
www.theirm.org
Pullan, P and Murray-Webster, R (2011) A Short Guide to Facilitating Risk 
Management, 
www.gowerpublishing.com
Woods, M (2011) Risk Management in Organizations: An Integrated Case Study 
Approach, 
www.routledge.com
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Risk strategy
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PART FIvE cAsE sTUDIEs
AMEC Foster Wheeler: Principal risks and uncertainties
The board has overall responsibility for risk management, for determining the risk appetite in relation 
to the principal risks, for implementation of the risk management policy and for reviewing the 
effectiveness of the risk management systems.
A global mandatory procedure detailing the risk management process is used at project, operating 
unit, business unit and group levels to identify the key risks that could have a significant impact on the 
ability to achieve objectives.
These are recorded in risk registers and evaluated to determine the likely impact and probability 
of occurring. Control actions are developed to mitigate or eliminate risks that are considered 
unacceptable. Risk owners are identified and given responsibility for ensuring actions are 
implemented with appropriate review dates. The risk registers are reviewed and updated at least 
quarterly with the relevant risk owners.
The risk committee is chaired by the chief executive and meets at least twice each year to:
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review and advise the board on Amec Foster Wheeler’s risk appetite in relation to the principal 
strategic risks, taking account of the current and prospective macro-economic, financial, 
political, business and sector environments;
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review and approve the risk management strategy, policies, procedures and processes;
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review and report to the board on the effectiveness of the risk management systems;
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review the Amec Foster Wheeler plc risk register and make recommendations as appropriate;
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review any new or emerging risks and any potential impact they may have on risk appetite and 
the ability of Amec Foster Wheeler to manage such risks;
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review any issues raised by other committees of the board that impact on the risk profile of 
Amec Foster Wheeler;
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review and consider reports on key risk issues such as new business and geographical 
locations for operations or projects;
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consider any internal or external risk trends and concentrations.
Edited extract from Amec Foster Wheeler plc
Annual Report and Accounts 2015