The AGCO, like all organizations, faces external and internal factors that involve risks and uncertainties which, if left unaddressed, could adversely affect the achievement of its strategic goals. An annual risk management cycle identifies key risks and exposures that the AGCO continues to address. Staff and management conduct risk assessments to help the AGCO update its key risks.
Enterprise Risk Management (ERM) is a continuous, proactive, systematic process to understand, manage and communicate risk from an organization-wide perspective and assists management in making strategic decisions that contribute to the achievement of the AGCO’s corporate objectives.
The goal of the ERM framework is to embed risk management within all operations and across all levels of staff. The framework sets out a process for identifying and assessing risks and highlighting and reviewing controls and mitigation strategies.
An annual risk workshop, facilitated by the Risk Management and Internal Audit Branch, is held with the C-Suite to identify, assess and decide on prioritization and mitigation activities for the AGCO’s key risks.
The final key risks are reviewed and approved by C-Suite, the Finance, Audit and Risk Management Committee and the Board.
These risk-assessment activities assist in the development of the AGCO’s Internal Audit Work Plan in addition to playing a fundamental role in the development of the AGCO’s Corporate Plan.
Business continuity risk
The AGCO continues to assess and update its Business Continuity Plans to ensure that critical services will continue in the event of a disruptive incident. In addition, enhancing the Disaster Recovery Strategy will ensure that network servers, data storage and all internal/external platforms will be recovered in a timely manner.
Information security risk
The AGCO will continue to assess, develop and implement information security awareness, policies and protocols to mitigate current and emerging cyber threats and increase the security maturity of existing controls. In addition, enhancing security awareness and security education increases knowledge and heightens staff vigilance.
Financial risk
The AGCO reviews and augments its financial risk mitigation measures to sustain operations and deliver on its mandate.