Vopak continually seeks the right balance between effective and professional entrepreneurship and effective control of the strategic, market, operational and financial risks arising from ordinary business activities. Vopak applies the COSO Enterprise Risk Management Framework to identify and control events that might offer opportunities or which could represent threats, at the earliest possible stage. To this end, the Executive Board collaborates closely with the management of the divisions and the operating companies, as well as with the corporate staff departments. Joint ventures are included in this. The identified risks and controls are set out in a ‘risk register’ that is available to management and the Executive Board. The management teams regularly discuss the risks and measures taken and include them in their quarterly reporting. Risks and progress on new measures to be taken are also  covered  in  quarterly  meetings  with  the  Executive Board.

Scenarios which could have a significant adverse impact on our financial results are analysed. Examples of such risks are:

• political upheaval in regions relevant for Vopak, resulting in a country boycott;
• a severe economic downturn in the chemical industry leading to surplus capacity;
• a serious incident at a terminal;
• a major slowdown in the demand for products that Vopak stores in one or more regions:
  By identifying and implementing mitigating steps, we are in a better position to face these risks and we can also concentrate on achieving opportunities for growth and implementing efficiency improvements.

Our standards and values were communicated and awareness of them promoted on the introduction of the Vopak Values. Commercial, operational and financial excellence programmes have also contributed to strengthening the internal control structure further.