Giving confidence in our ability to achieve our goals
Over and above sound policies and procedures, we recognise that good judgement and flexibility are central to achieving our objectives in an ever-changing landscape.
As such we place an emphasis on having the right discipline and structure in place alongside our people and values to enable effective governance.
Our approach to governance is based on the COSO model of internal control
Our approach to governance is encapsulated in our Multiplex Internal Controls Framework, based on the internationally recognised COSO model of internal control.
The objectives of the Multiplex Internal Controls Framework are to ensure:
- Efficient and effective operations
- Accurate financial and operational reporting
- Compliance with laws and regulations
It provides principles-based guidance across five interrelated components of internal control:
- Control Environment - Establishes the foundation for the internal control system by providing fundamental discipline and structure
- Risk Assessment - Involves the identification and analysis by management of relevant risks and opportunities to achieving predetermined objectives
- Control Activities - Includes the policies, procedures, and practices that ensure management objectives are achieved and risk mitigation strategies are carried out
- Information and Communication - Supports all other control components by communicating control responsibilities by providing information in a form and time frame that allows people to carry out their duties.
- Monitoring - Covers the oversight of internal controls by management or other parties outside the process
We believe that all of our people have a role to play in governing the way we do business, and so our internal control principles are applied across all four levels of the organisation – Multiplex Group, Multiplex Divisions, Regions and Projects.
Managing risk through internal controls
The Multiplex Internal Control Framework is the means by which we identify and analyse risk, and develop and manage appropriate responses to risks & opportunities. We recognise that effective risk management requires more than policies and procedures, and so the framework also provides guidance for the structure and discipline we need to achieve our objectives.
Our goal with risk management is to enhance opportunities, reduce threats and sustain Multiplex’s competitive advantage as a sustainable business. To that end we have established three core risk assessment principles:
- To ensure risks and opportunities of all critical processes (formal and informal) are identified and assessed such that no major risks (or opportunities) are overlooked
- To consider the potential for fraud in assessing risks
- To identify and assess changes that could significantly impact the system of internal control
At a project level we are committed to assessing risks and opportunities as early as possible, and eliminating critical risks which may have long-term consequences. A suite of project management plans are established on every project, to detail the risk management strategies and procedures that will be adopted.
Supporting corporate governance through policies and procedures
Our processes and procedures are underpinned by a number of policies and statements, including our approach to modern slavery, anti-bribery and whistleblowing. These policies are available to view in our Legal information.