1. Purpose
This policy sets out Lacuna Space Ltd’s commitment to a proactive and systematic approach to identifying, assessing, managing, and monitoring risks that could impact the achievement of our strategic objectives.
2. Scope
This policy applies to all functions, departments, projects, and employees of Lacuna Space Ltd. It also extends to third parties acting on behalf of the company.
3. Definitions
- Risk: The effect of uncertainty on objectives, which can be positive or negative.
- Risk Management: The coordinated activities to direct and control an organization with regard to risk.
- Risk Appetite: The level of risk Lacuna Space Ltd is willing to accept in pursuit of its objectives.
4. Risk Management Objectives
- Integrate risk management into the corporate culture and decision-making processes
- Identify and assess risks early
- Take appropriate steps to mitigate or manage risks
- Enhance resilience, agility, and stakeholder confidence
5. Responsibilities
- Board of Directors: Oversight and strategic direction on risk management.
- Executive Team: Implementation of the policy and embedding risk awareness across operations.
- Managers and Employees: Identification, assessment, and mitigation of risks in their areas of responsibility.
- Risk Owner: Individual assigned responsibility for managing a specific risk.
6. Risk Management Process
- Identification: Recognizing potential risks affecting the business.
- Assessment: Analyzing and evaluating the likelihood and impact.
- Response: Determining risk mitigation or treatment strategies.
- Monitoring and Review: Tracking risks and the effectiveness of controls.
- Reporting: Providing timely updates to management and stakeholders.
7. Risk Categories
Risks may include but are not limited to:
- Strategic Risks
- Operational Risks
- Financial Risks
- Compliance and Legal Risks
- Reputational Risks
- Environmental and Safety Risks
8. Training and Communication
All employees will be made aware of the risk management policy and receive training where appropriate. Open communication about risk will be encouraged across all levels.
9. Policy Review
This policy will be reviewed annually or following any significant change in operations or external environment. Revisions will be approved by the Board.