As an integrated energy operator, with a presence in a large number of geographies, Galp faces a progressively more challenging business environment, and is exposed to internal and external factors characteristic of a VUCA (Volatile, Uncertain, Compex and Ambiguous) context that can introduce variability to its performance and make uncertain the capacity of the company to reach its strategic objectives.
A comprehensive approach to risk management ensures continuous monitoring of risks and opportunities and an assessment of potential impacts, enabling the management of the inherent exposure and ensuring compliance with the Group's strategic challenges.
The objectives, processes and responsibilities that will enable Galp to establish a sound risk management structure are defined in the Risk Management Policy.
Risk Management governance model
Galp has adopted the model of the three lines of defense for risk management, in accordance with generally accepted best practices.
This model enables a consistent relationship between risk management activities developed at different levels and of different periodicity.
Corporate Risk Management - incorporated in the cycle of preparation and follow-up of the Group's business plan, it is the responsibility of the Risk Management Department.
Business Risk Management - in an articulated and integrated manner with the Business Units’ Local Risk Officers (LRO), the Risk Management Department promotes the systematic review of the main uncertainties, based on the context analysis and the Galp’s strategy, as well as on other analyzes performed by the LROs.
Operational Risk Management - it incorporates risks identified by Business Units (with support in appropriate methodologies), as well as the results of the surveys promoted by the Risk Management Department with the participation of industry experts.
Strategic Decisions - as part of the decision-making process, the Risk Management Department is responsible for evaluating non-technical risks for all investments in excess of € 75m or others, as decided by the Executive Committee.