Premier Case Study

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Risk factors Premier is an international business which has to face a variety of strategic, operational, financial and external risks. Premier’s business, financial standing, results and reputation may be impacted by various risks. Not all of these risks are within the company’s control and the company may be affected by risks other than those listed below. Clear responsibility The Board is responsible for overall group strategy, acquisition and divestment policy, approval of major capital expenditure projects, corporate costs and significant financing matters and the management of risks. The Board recognises that risk is inherent across Premier’s operations, and all activities are subject to an appropriate review to ensure that risks are identified,…show more content…
Loss of personnel to competitors or our inability to attract quality human resources could affect our operational performance and growth strategy. Premier has created salary, bonus and long-term incentive arrangements designed to incentivise loyalty and good performance. Commodity prices Oil and gas prices are affected by global supply of and demand for these commodities. Factors that influence these include operational issues, natural disasters, weather, political instability or conflicts and economic conditions or actions by major oil- exporting countries. Price fluctuations can affect our business assumptions and can impact investment decisions and financial position. Premier manages this risk with an oil and gas hedging programme to underpin our financial strength and capacity to fund our future developments and operations. Financial discipline Premier has established financial policies and processes to ensure that it is able to maintain an appropriate level of liquidity and financial capacity and to manage the level of assessed risk associated with the financial instruments. A detailed set of financial and treasury policies and a delegation of authority manual are also in place to reasonably protect against risk of financial fraud in the
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