Dominion has created a Risk Management Policy approved by the Board of Directors and the supervision of which is the responsibility of the Audit and Compliance Committee.
The company is exposed to various risks that are inherent in the various markets, countries and activities it operates in. The first step to avoid these from occurring is to identify and assess the factors that may affect the activities.
This analysis is then plotted on a risk map, where combining the impact and probability of the risks occurring determines the severity of the risk and its position on the map.
The company then decides how to respond to each risk, monitors the chosen actions and reports the results of the analysis performed.
The levels of acceptable risk are regularly updated accordingly with changes in corporate strategy and risk profile business. In 2019 Dominion updated its risk map and designed and implemented mitigating measures to reduce or eradicate the likelihood of them occurring.
As a result of the actions taken to reduce them, these risks did not happen.
Lines of defence
The various roles in the RGA can be grouped into three lines of defence against the risks that threaten compliance with strategic, operational, financial and ESG (environmental, social and governance) goals.
While the first line of defence is dependent on Senior Management and the Management Team, both the second and third lines of defence are under the guidance of the Compliance Department.