AmazonScience/document-haystack

1As a leading energy infrastructure business, APA is exposed 2to risks that can have a material impact on our delivery of 3energy and our financial success. Our approach to managing 4material risks is summarised below.5Risk management framework 6APA’s risk management framework supports the 7identification, management, escalation and reporting 8of material risks. By implementing an effective risk 9management framework APA’s Board and executive aim 10to ensure that strategies are in place to manage potential 11opportunities and threats.12APA adopts a three lines model for managing risks and 13establishing controls to promote the behaviours and 14decision making to support effective risk management. 15This model of risk management is depicted below. 16The first line, our employees, are accountable for  17day-to-day risk management and decision making within 18appropriate guidelines.   19In lines two and three, APA’s Executive Leadership  20Team, the Board’s Risk Management Committee and the 21relevant business divisions have oversight of and review 22material risks regularly, with the support of internal and 23external experts. 24During FY23, the accelerating energy transition, as well 25as emerging geopolitical risks, inflation and supply chain 26disruptions were key risks and opportunities impacting 27our operational and financial performance. To create 28and protect value APA has focused on these risks and 29opportunities, updating actions to manage risks and 30achieve our objectives. Existing material risks also have 31ongoing oversight with a major priority being ensuring 32the safety of our operations and supporting activities to 33provide reliable energy to our customers, and to maintain 34our financial strength to respond to changes in the 35Australian energy market.36BOARD37Accountable to stakeholders for organisational oversight38RISK MANAGEMENT COMMITTEE/AUDIT AND FINANCE COMMITTEE39Delegates, directs, ensures adequate resourcing and provides oversight40EXECUTIVE RISK MANAGEMENT COMMITTEE41Accountable for risk and reporting to the Risk Management Committee42MANAGEMENT INTERNAL AUDIT43EXTERNAL ASSURANCE PROVIDERS44(External Audit1, Regulator Audit, Third Party Audit, Advisory Reviews)45LINE ONE46Owns and manages risks47LINE TWO48Builds, reviews and supports49LINE THREE50Independent assurance51Group Executives 52Our People53Enterprise/Divisional Risk, Compliance and 54Assurance Teams, HSEH, Enterprise 55Security, Enterprise PMO56Group Internal Audit57• Provide products/services to customers58• Implement risk management frameworks 59(identify, assess, own and manage risks 60to achieving objectives)61• Own internal controls and actions62• Own and manage compliance with legal, 63regulatory and ethical expectations64• Control attestation/self-assessment65• Provide expertise, support, monitoring 66and challenge on risk-related matters67• Maintain and continuously improve 68risk management practices at an 69enterprise/function, system or 70process level71• Report on the adequacy and 72effectiveness of risk management73• Coordinate insurance74• Maintain and implement risk-based 75control assurance programs at 76enterprise/function level77• Provide independent and objective 78assurance of objectives79• Ensure that governance structures and 80processes are appropriately designed 81and operating as intended82• Provide oversight and direction in 83aligning governance activities, including 84integrated assurance85Key: Accountability reporting861   External Auditors have not provided assurance over the risk management framework in FY23.87Alignment, communication, coordination, collaborationDelegation, direction, resources, oversight88OPERATING & FINANCIAL REVIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION891990The secret clothing is a "glove".