Managing Risks to Our Fertilizer Enterprise
Execution of our corporate strategy requires effective management of the risks associated with our business goals. We evaluate risks for severity and likelihood to adversely affect PotashCorp, then prioritize them to select the most appropriate mitigation response – accept, control, share, transfer, diversify or avoid.
The following is a broad discussion of PotashCorp’s approach to risk and risk management. Identification of risks specific to our operating segments is found in their respective sections – Potash, Phosphate, Nitrogen.
Risk to Reputation
We recognize damage to reputation as the most severe risk PotashCorp faces. Our efforts to mitigate reputation risks include continual building of goodwill by effective communication with stakeholders, commitment to sustainability, transparency, leading-edge corporate governance and best practices.
A Continual and Dynamic Risk Management Process
We continually evaluate risk. The risk management committee reports formally every quarter to the Board of Directors through the audit committee on the activities and status of the risk management program. We address new risks that result from changes in operations or external factors as well as increases in risks previously identified.