The Group’s risk management system has been designed to identify and manage threats and opportunities. Effective risk management enables HELLENIC PETROLEUM to capitalise on opportunities within a strictly controlled environment.
The Group uses a set of measures - as part of its risk management and monitoring system. These measures include our Business Principles which represent the Group’s beliefs, values and expected behaviour. Along with the Code of Conduct, these principles form a key part of the internal environment in which risk management is conducted. Other risk management tools include the 5-year rolling business plan, per sector of activity, budgeting, reporting and scheduled internal controls. The entire Group uses uniform guidelines, procedures and policies which serve as the basis for all financial and management reporting activities.
Τhe Internal Audit and Risk Management System includes safeguards and monitoring mechanisms at various levels within the organization, as described in detail at: http://www.helpe.gr/userfiles/8ea1f0cb-9e62-48e4-b947-a27b00fb14bb/BoD%20Report-2015-ENG-NEW_1.pdf, (p. 32-38, 149-152 & 157-159).
The Group’s Internal Auditing Department, which is part of the Internal Auditing System, contributes to the improvement of the Group’s performance in the fields of Risk Management, Internal Control Systems and Corporate Governance, so that the Group’s strategic objectives can be achieved.
Significant actions in 2015:
- The Group’s Internal Audit Department was upgraded to a Division and reorganized with the addition of a new Department in order to fully cover, in auditing terms, all of the Group's activities. Meanwhile, the planned increase in company auditors is also under way.
After the reorganization, the Division now consists of the following Departments:
- HELPE’s Administrative – Financial Internal Audit Department
- Industrial Installations & Supply Internal Audit Department
- Domestic and International Marketing Internal Audit Department
- Special Audits Department
- Established and implemented the Group’s annual Risk Assessment, based on supporting material developed by the Group’s Internal Audit General Division and addressed to all organizational units and companies within the Group. The objective of the Risk Assessment, is on the one hand, to develop a unique culture with which to identify, evaluate and manage risk in the Group and, on the other hand, to use its results in the preparation of the Group’s annual and three-year auditing plan, with the aim of covering areas of high risk in order of precedence.
- A total of 34 scheduled and unscheduled audits were conducted outperforming the annual audits program. The audits themselves were as follows:
- 18 audits were related to financial & administrative matters
- 4 audits were related to compliance issues
- 10 audits were related to facilities’ technical issues
- 1 audit was related to financial & engineering matter
- Specifically, the Industrial Installations and Supply Internal Audit Department extended its audits to new areas that had not been audited in the past, one example being the refineries’ Safety and Environment Departments. During the audits a number of deviations were detected concerning the implementation of procedures, as well as the need to revise certain existing procedures and create new ones. Also, savings opportunities, that were not sufficiently exploited to date, were identified. Appropriate corrective actions and implementation timetable were agreed upon in cooperation with the heads of the audited units.
- An audit of the supply chain identified a procedure violation (its early detection meant that any financial impacts were avoided). The issue is being properly addressed and is consideration in accordance with the Group’s existingregulatory framework.
- During audits of HELPE’s Administrative – FinancialInternal Audit Department, two corruption incidents were identified in Greece and Cyprus which led to the implementation of the relevant provisions of the Code of Conduct and the Internal Operating Regulations.