At Tullow, we recognise that effectivelymanaging risks and opportunities is essential to our long-term success. Our ability to identify, assess and successfully manage current and emerging risks is critical in ensuring we achieve our strategic objectives and protect shareholder value.
Risk oversight and governance
A risk-focused culture and consistent risk management framework are embedded across Tullow at all levels and are driven by the Board. The Board is responsible for
ensuring we maintain an effective risk management and internal control system and it works closely with the SLT to ensure this is in place. The Board oversees the identification, assessment and mitigation of the risks that could affect our business, including those risks that could threaten our strategy, operating model, performance, solvency and liquidity.
The Audit Committee oversees risk management and internal control processes across the Group to ensure that they are effective. The Audit Committee is also responsible for overseeing our internal audit programme and, with the support of the SLT, undertakes an annual review of internal control effectiveness, which it reports to the Board.
The latest internal control effectiveness review was undertaken and reported to the Board in November 2025. The effectiveness of internal controls was again considered by the Board in April 2026 as part of the Annual Report approval process. See pages 58 and 59.
The SLT is collectively responsible and accountable for the risk management processes that operate across Tullow, with individual members taking ownership for risks that fall in their business area.
Risk management framework
Our risk management framework takes a ‘top-down, bottom-up’ approach and is embedded throughout Tullow. This structure ensures ownership and responsibility for identification, assessment and management of key risks and opportunities at all levels of the Company.
Board
Sets risk appetite.
Oversees identification, assessment of and response to principal risks.
Monitors effectiveness of risk management process.
Audit Committee
Oversight of risk management and internal control processes.
Oversees independent, objective and competent internal audit function.
Oversight of compliance with legal, ethical and regulatory expectations.
Senior Leadership Team
Sets tone for an effective risk management culture.
Identifies and assesses principal risks.
Determines principal risk mitigation actions and monitors their effectiveness.
Oversees and supports business leadership’s risk identification processes and challenges their risk assessments.
Our principal risks
During the year, the Company’s risk profile has been closely monitored. The external economic and political landscape including the war in Ukraine, inflationary pressures and oil price volatility have not resulted in any new risks or material changes to existing risks.
Our assessment of the likelihood of our principal risks occurring and the potential impact after taking into account the risk management processes and mitigation actions we implement is summarised as follows.
1. Business plan not delivered | |
Category: Strategy | |
2. Asset integrity breach | |
Category: Health & safety and security | |
3. Geopolitical risk | |
Category: Stakeholder and Financial | |
4. Climate change effects | |
Category: Stakeholder | |
5. Major accident event | |
Category: EHS | |
6. Insufficient liquidity and funding capacity to sustain business | |
Category: Financial | |
7. Capability cannot be attracted, developed or retained | |
Category: Organisation | |
8. Compliance or regulatory breach | |
Category: Conduct | |
9. Major cyber-disruption | |
Category: Cyber |