A
s a listedcompany,
Baker Tech is committed
to safeguarding
stakeholders’ interests, and the
Group’s assets and todeliver
sustainable value to shareholders.
Riskmanagement is an integral part
of strategic, operation andfinancial
decision-makingprocesses at all
levels of theGroup. In anevolving
economic and industrial landscape
of uncertainties, theGroup
acknowledges the importance
of identifying and addressing
these risks.
TheGrouphas inplace an
enterprise riskmanagement
framework toeffectivelymitigate
andminimise significant exposures
to industry-related, financial and
operational risks– toensure
overall healthof theGroup’s
activities andbusinesses.
The frameworkand implementation
actions are regularlyassessedand
evaluatedby theBoard toensure
alignmentwith theGroup’s strategic
objectives andconsistencywith the
Group’s riskappetite.
Industry-relatedRisks
In2017, worldwideeconomic
growth andgeopolitical upheavals
led to improveddemand and
recovery inoil prices, amidst
output cuts. Brent crudeoil prices
ended2017 aroundUS$65/bbl,
its highest since2015.
As amanufacturer andprovider
of specialisedequipment and
services for theoil andgas industry,
theGroup isexposed toany
changes inmarket dynamics.
Theprotracteddownturn in the
oil andgas industry since2014,
resulted inprojectsbeingdeferred
or cancelledanddiminished
appetite for long-termmajor
capital projects. As such,
Baker Techadopts strategic
objectives tomitigateoperational
risksbycautiously reducingour
cost baseandcurtail discretionary
expenditure.
With the advantageof anefficient
management and a soundbalance
sheet, theGroupcontinue
topursueopportunities for a
diversified revenue stream.
OperationalRisk
Operational risks areparticularly
inherent in themanufactureof
heavy andoversizedoffshore
engineeringequipment.
Accordingly, theGrouphas put
inplacemeasures that allow for
pre-emptive identificationof areas
of potential exposurewhichcan
be addressed tominimise adverse
impact to theGroup.
Our operationsentail high risk
activities suchashotworks,
work-at-height andconfined
spaceactivities andmajor lifting
operations. Regular training,
toolboxand safetymeetings,
safetypromotions aswell as site
walkabouts arecarriedout by
the safetycommittee, inorder to
RiSKManagement
Sustainability
BAKER
Technology
L IMI TED
THE BE ST
I N US
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