Risk Management

Qatar Steel’s Integrated Enterprise Risk Management (ERM) framework is instrumental in driving value creation by facilitating the achievement of the company’s strategic, tactical, and operational objectives. This framework is supported by a culture that emphasises the importance of risk management at all levels of governance, including the Board, Board Audit Committee, Qatar Steel Risk Management Committee, and functional levels. Risk-based decision-making is ingrained in our culture, with risk assessments integrated into key decisions to mitigate business and strategic risks effectively. The ERM Framework is governed by the Qatar Steel Risk Management Policy, Qatar Steel Fraud Risk Management Policy, and Qatar Steel Business Continuity Management Policy. The Board Audit Committee has been entrusted with the oversight of these policies, ensuring that risks above the Qatar Steel Board Approved Risk Appetite and tolerance levels are properly mitigated or managed.

Qatar Steel attended the Marsh Business Resilience Forum on the 15th of March 2023, where the 2023 Global Risks Report was presented and discussed with the participants. Our risk management draws from established frameworks such as the COSO Framework and ISO 31000:2018.

Fraud risks, including corruption risks, hold significant priority within Qatar Steel, as demonstrated by the implementation of a Fraud Risk Management Policy in 2021. All business areas have identified key fraud risks, including corruption, aligning them with the Companywide Risk Management Policy and Code of Ethics. All 27 departments/ functions were re-assessed for fraud/ corruption risks during the annual risk review exercises conducted annually.

Company-wide awareness sessions have been conducted, ensuring comprehensive risk identification and assessment throughout the value chain. Emphasis has been placed on internal controls to safeguard assets and regulate behaviours pertaining to fraud and corruption risks.

No contracts with business partners were terminated or not renewed due to violations related to corruption and during the reporting period there were no public legal cases regarding corruption brought against the organisation or its employees.

Over the coming years, we will gradually introduce risk stress testing and risk scenario analysis as essential inputs in our company’s strategy formulation and implementation. This exploration aims to assess the cost benefit value associated with these risk management tools. By incorporating them into our decision-making processes, we can gain valuable insights into potential risks, evaluate their impacts, and make informed strategic choices.

Risk Management Governance Strategy has been has been developed in line with QNV 2030, Qatar National Development Strategy, and guided by QatarEnergy’s Strategy. Some of the key objectives identified to mitigate climate related risks include the Reduction of GHG emissions and Leading the Energy transition in the Region. Progress on the respective mitigation measures that will enable the achievement of these objectives are regularly tracked and reported on a quarterly basis to the Qatar Steel Risk Management Committee, The Qatar Steel Board Audit Committee and the Qatar Steel Board of Directors meetings.

The Fraud Risk Management Policy at Qatar Steel includes monitoring of corruption risks and is aligned with the company’s Enterprise Risk Management Policy. Planed awareness sessions are conducted with risk champions across all business areas. Focus has been placed on introducing internal controls to safeguard assets and regulate behaviours pertaining to fraud and corruption risks.