MANAGING RISK
TRC’s Chief Risk Officer oversees the Company’s risk
management processes and practices that impact the
strategic direction of the Company. Our risk man-
agement program is comprehensive in nature and
enables us to identify sources of risk, establish the
desired level of risk, and then develop opportunities
to mitigate those risks in alignment with our strategic
objectives.
We strive for a defensively biased risk posture striking
an appropriate balance between risk and opportunity,
to ensure that we maintain the appropriate risk-reward
culture. We routinely apply these principles during our
project review process, which helps us to communi-
cate how managing risk is a strategic tool across all
levels of the organization. We believe that emphasiz-
ing communication and clear accountability for risk
throughout the organization has served to significantly
improve our risk management effectiveness, particu-
larly the high level of focus and resources we employ
throughout Operations and the Corporate Safety,
Cyber/IT, Finance, Sustainability, and Legal functions.
ADDRESSING CLIMATE RISK
We regularly evaluate both transitional and physical
climate-related risks and opportunities through our
Risk Management process and in our Business
Continuity and Disaster Recovery (BCDR) planning
process. Our Sustainability Director reviews these
annually with our Chief Risk Officer and the Chief
Financial Officer.
Transitional risks include potential future regulatory
changes restricting GHG emissions, which could
increase compliance costs and impact capital
spending by our clients, and the shift in fuel supplies
away from fossil fuels, which could present a longer-
term risk as it impacts our clients’ capital spending
and investments.
We feel we have the adaptive capacity through our
existing management systems to regularly review
potential market changes. While approximately 16%
of our business in FY19 was dedicated to the oil and
gas sector and essentially all our clients currently
depend on fossil fuels in their energy mix, we believe
these risks are offset by our diversified portfolio of
clients and services, especially the growth of the
renewable energy market, energy efficiency and other
green technology opportunities.
Physical risks to our business from climate change
can include severe seasonal weather conditions,
such as hurricanes, floods, snow- storms, or other
inclement weather, which can cause reduced project
activity, temporary closure of some of our offices and/
or project sites; degraded fieldwork safety and effi-
ciency; and/or property damage. Our goal is to keep
our employees safe and minimize interruption to client
services.
Our Crisis Management Committee leads our Busi-
ness Continuity and Disaster Recovery (BCDR) Pro-
gram to successfully manage the safety of our people
and minimize the impact to our business. The Com-
mittee conducts and regularly reviews and updates
a Corporate Business Impact Assessment which
addresses natural, technology and human-caused
hazards, vulnerabilities, consequences and control
measures for business-critical assets, processes, and
people.
The BCDR Program is then implemented by the des-
ignated local and sector-based recovery teams who
are most impacted by the disaster. Teams are trained
on the Program and are responsible for completing a
local business impact analysis to prioritize risks.
Our BCDR Plan identifies vulnerabilities and
recommends measures to prevent and respond
to extended outages, such as ensuring our
employees can work from remote locations
using servers that are backed up and supported
with redundant equipment and cloud-based
technologies.
Because of the decentralized nature of our business
operations, any given severe weather event or other
natural disaster is not anticipated to have a substan-
tive financial impact to our overall business; however,
we do anticipate increasing frequency and severity
of events and are incorporating these risks into our
business continuity plans accordingly.
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