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Strategic report
OCU Group | Annual report and financial statements 2025
Governance
Financial statements
Risks
Health and safety Risk area: Operational
Commercial contracting Risk area: Strategic and commercial
Securing value-accretive acquisitions Risk area: Strategic and commercial
The Group employs a comprehensive risk management process and uses a structured risk methodology to identify, assess and mitigate risks effectively. This approach supports the achievement of the Group’s strategic and performance objectives. Our risk management processes involve the initial identification of current and emerging risks at an operational level. These risks are then assessed, including the potential impact on our business, whether they are increasing or decreasing, and the speed at which they can be mitigated or controlled. The process also establishes our risk appetite and balances the level of risk and opportunity in our overall business. The Board periodically reviews the top risks in the register, focusing on those most critical to our strategic goals.
Potential impact The Group continues to deliver complex and potentially hazardous work across diverse environments. Inadequate management of health and safety risks could result in serious injury or harm to personnel or the public, alongside criminal, financial and reputational consequences. As project volumes grow, maintaining a consistent safety culture across all regions and acquisitions is critical. Mitigation A strong safety-first culture is embedded through our ISO 45001-certified management system, reinforced at all levels of governance. In 2025, further refinements were made to our ‘Think Safe’ campaign and safety training through OCU One. Health and safety remains the first agenda item at all Group, sub-committee and operational meetings, reflecting its priority.
Potential impact Entering into contracts without adequate review may lead to unbalanced obligations, increasing the risk of disputes, client dissatisfaction and financial loss. As our services expand across markets and delivery models, consistent contract governance becomes more important.
Potential impact Failure to identify, structure, or integrate acquisitions effectively may lead to lower-than-expected returns, or exposure to unrecognised risks. Rapid growth via acquisition increases the importance of disciplined assessment.
Mitigation Contractual risk is controlled through a formal approvals process and oversight by experienced commercial and legal teams. Ongoing reviews of key frameworks and internal training support consistent standards. During the year, we enhanced visibility of contract risk via improvements to our commercial systems.
Mitigation We follow a structured due diligence and integration process, involving both internal and external experts. Deferred consideration mechanisms continue to form part of our approach, aligning consideration with post-deal performance. In 2025, we further developed our internal integration playbooks.
Risk management is primarily the responsibility of the Group Board,
delegated to the Audit & Risk Committee. The committee reviews the top risks in the register on a quarterly basis, with deeper interrogations into specific risks, ensuring thorough oversight and management.
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