Risk management

Night time replacement of a gantry on the Runcorn Bridge, UK. Mott MacDonald has had a long running involvement in maintenance of the bridge as engineer for owner Halton Borough CouncilTo minimise our customers’ and our own exposure to risk we have developed a holistic approach to risk management encompassing the company’s strategy, its processes and procedures, and the attitudes and behaviours of its staff.

We see commercial, safety and environmental performance, and the quality of our solutions and service, as inseparable. By working to safeguard against loss in any one of these areas, we aim to deliver success in them all. By making risk an everyday concern of each and every one of our people we seek to continuously improve the success of our projects and our customers.

Unique approach

Our unique approach to risk management, CLASS, requires strong Communication and Leadership, Assurance of quality, appropriate Staff competence and effective Supervision. CLASS is designed to prevent systemic failure, extreme examples of which include the Chernobyl nuclear disaster, the collapse of US energy giant Enron and the Deepwater Horizon oil spill in the Gulf of Mexico. We emphasise that all losses, great and small, share common causes. Effective risk management employs all of the CLASS principles to protect our projects, customers, the environment, the public and our people.

CLASS training is mandatory for all staff and forms a component of each employee’s annual review, which is designed to chart their achievements, pinpoint needs and set new objectives. CLASS messages are regularly reinforced through Group publications, events and meetings. CLASS has contributed to Mott MacDonald’s industry-leading safety record, continuing growth, strong performance in delivering award-winning projects and high levels of customer satisfaction – 7% ahead of our nearest competitor.

Embedding the right behaviour

Every manager is expected to show strong leadership in applying CLASS appropriately and effectively. Each employee is asked to question how they can improve their behaviours and attitudes to risk. Our mandatory risk awareness training is geared to the needs of staff at different stages as they progress through their careers.

Robust structure and strategy

Our internal ownership enables us to take a long term view, acting in the best interests of our customers and our staff. Carefully planned diversification has created a broad base to our business, protecting the company as a whole against market fluctuations.

Proven systems

Taking account of local social, political, economic, legislative and environmental conditions, our systems for identifying and managing risk and our strategic response to risk are continually tailored to the markets in which we work.

Project-specific risk control

We have developed an industry-leading approach to project review called Peer Assist that complements the Group’s mandatory quality, environment and safety management system. Led by an experienced mentor, the project team discusses concerns, exchanges ideas and challenges assumptions to flush out and resolve safety, technical and commercial issues.

Strengthened by industry-leading IT and data management

By establishing Group-wide IT platforms we promote common working practices, strengthening internal management processes, enhancing knowledge exchange and aiding efficient project delivery. Our IT and data management are supported by an information security system conforming to international standard ISO 27001, introduced in early 2011.

Goals for 2010/11

Further reinforce our CLASS approach to risk management throughout the Group. Make decisions based on knowledge of the risks.

Commentary

All new staff are inducted into our CLASS method for risk management and 85% of staff globally have now received training. CLASS has been incorporated into professional development reviews for all staff.

Goals for 2011/12

Maintain emphasis on the CLASS risk management approach. Make decisions based on knowledge of the risks.