Managing Risk
TRC’ s Chief Risk Officer oversees risk management programs and practices that directly impact the strategic direction of the Company. Our enterprise risk management process is a comprehensive, consistent and transparent means of aligning our corporate strategy at all levels of the Company to keep our team safe, achieve our business objectives, and directly manage risk. Key risk factors which could materially and adversely affect our business are outlined in our Annual Report.
Our primary risk factor is safety. We manage our safety performance and culture through intensive use of risk identification and risk mitigation processes. We use leading and lagging safety performance metrics to monitor and impact our safety performance.
The primary element of our contract formation process focuses on the risk associated with each project and must be evaluated against our contractual risk acceptance standards and the unique aspects of a project. While most of our project work is performed under contract terms that limit our risk and / or liability, TRC accepts significant levels of financial and contractual risk in our portfolio of complex and / or fixed price projects.
Recognizing peer review can significantly enhance the safety, quality, and financial performance of our projects, and that such reviews can be used to manage risk and improve overall company performance, particularly in the selection, pricing and execution of complex projects, each or our operating sectors follows a complex project oversight process for review of proposals, pricing, contracting, and project management.
Complying with Requirements
Our commitment to environmental, health and safety compliance is expressed in our EHS Policy.
We provide employees with necessary training upon hire and during the course of employment to perform required work, and we monitor conformance via our quality program.
Our Code of Conduct states our commitment to properly respond to inquiries by government officials. It requires employees to refer any governmental inquiries or notices, other than routine inquiries in the ordinary course of providing client services, to the General Counsel who is responsible for coordinating a full and timely response, including corrective actions if warranted. Noncompliance events and near misses are communicated internally to share lessons learned in order to avoid recurrence.
Our businesses are subject to various rules and regulations at the federal, state and local government levels. We believe that we are in compliance with these rules and regulations and that we have the appropriate licenses to bid and perform work in the locations in which we operate. In FY15 / 16, we received one notice described below which resulted in a nominal monetary penalty:
• On or about Feb. 9, 2015, the New Jersey Department of Consumer Affairs, Bureau of Code Services, issued a Notice of Violation relating to TRC Environmental Corporation’ s failure to file a quarterly report within one month of the end of the quarter due to an administrative clerical error, stating that no work had been performed under the asbestos license during the quarter. The $ 500.00 penalty was reduced to $ 300.00 on appeal and the violation was recorded as a failure to submit paperwork. The matter is closed.
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