Managing Risk
Strategic and Operational Risk Management
The management of strategic and operational risk within BBI and subsidiaries is an ongoing process of development and refinement.
Combining knowledge, technology and innovation means BBI can share learning and build online resources to better manage risks at all levels of the Group.
BBI promotes risk management policy, standards and templates that clearly define good practice in risk management. These standards are supported by BBI’s risk information system, an online web-based tool that captures both risk management and internal audit outcomes. BBI’s global internal audit provider, Ernst & Young, is therefore able to interrogate management’s risk profiles and ensure internal audit initiatives are targeted to areas of highest risk.
BBI is an active participant in Babcock & Brown’s community of specialised funds risk management practice. This enables BBI to learn from and build off Babcock & Brown’s broader risk management knowledge base, ensuring BBI is up to date with all pertinent developments in the risk management community.
Risk management as a practice and business discipline does not operate in isolation. Accordingly, risk management initiatives are bolstered and supported by other work programs, including integrated management reporting, governance standards and BBI policy frameworks. Risk management processes are also embedded in other corporate development functions such as OH&S, business continuity and security programs.
Managing Insurable Risk
Over the last four years, BBI has been developing and implementing strategies to improve terms and reduce costs of property (material damage) and liability (casualty) insurance for all operating businesses.
This has led to the development of a core panel of global underwriters with the size and appetite to write BBI’s risk across different asset classes and geographies. By sharing as much information as possible with those underwriters, including exploring BBI’s approach to key areas such as operational risk management and health and safety, BBI is able to ensure improved cover for below-market premiums.
BBI expects to further refine structures, such as specialised cover arrangement for BBI Euroports, as well as supporting Babcock & Brown initiatives such as professional lines cover for specialised funds.