Aurum Operating Framework document, which sets out the Company’s approach to delivering consistently high levels of business performance based on the principles of good corporate governance and the effective management of risk across the Aurum organisation. Risk Management is the first agenda item at every monthly Board meeting.
Aurum’s risk management framework can be considered in the context of three principal risk categories :
1. Personal Risk
Aurum is committed to maintaining the highest standards of health, safety and environmental (“HS&E”) management, both on-shore and at sea for its employees, contractors, customers and all other parties affected by its activities.
The Company operates a strict HS&E management policy, the details of which are prominently displayed at every one of Aurum’s operational offices, and compliance with this policy is monitored on a continual basis throughout the Company. Seafarers and contractor are made aware of the Company’s HS&E policy as part of any contractual relationship. Staff training, including awareness of safety hazards, forms a critical component of personnel risk management. In the case of seafarers working on managed vessels, use of the in-house training function operated by the Company ensures that seafarers understand the key policies and procedures prior to embarking.
Aurum’s strong track-record of managing crew member risk is recognised by its customers, who are increasingly prioritising employee safety and welfare as a core part of their own global HS&E strategies
2. Operational Risk
A fundamental requirement for any successful ship manager is ensuring the efficient and uninterrupted operation of customers’ vessels and minimizing for the customer the risks associated with the day to day operation of their vessels, such as Port State detentions or marine incidents.
3. Business Risk
Aurum maintains a Group Risk Register which is used to record and manage the Company’s exposure to potential business risks which could have a material impact on its performance or reputation, for example customer under-funding or bad debts. The Group Risk Register is reviewed as part of the first agenda item at every monthly Board meeting, including discussion of how management are addressing identified risks and the approach to taking any corrective actions which may be deemed necessary.