Managing Risk

Risk management and mitigation practices are embedded in strategic planning and operational processes. Identifying risks, measuring competency, training personnel and purchasing equipment are guided by Company policies, standards, processes and best practices.

The Enterprise Risk Management program employs a risk matrix that uses seven probability factors and a scale of severity of events to identify and assess potential hazards and risks that could impact the health and safety of people, property and the environment. The Corporate Risk Management Standard outlines the Company’s approach to assessing and managing risks.

This analysis provides greater certainty for shareholders, customers and suppliers that risks are well managed, and leads to increased confidence in the communities where Husky operates.

Twice a year, the Corporate Risk Management group undertakes an internal risk assessment to better identify and manage risk, understand the risk drivers and promote a culture of risk awareness. It determines who is accountable for managing and mitigating each risk and identifies any emerging issues.

The potential financial, health, safety, reputational and environmental impacts of each risk are assessed and critical risks are reported to the Board of Directors.

Husky strengthens its preparation for potential emergencies through exercises, established processes and Emergency Response Plans (ERPs) designed to guide a consistent and effective response to any event which could affect employees, contractors, the community, the environment and/or the Company’s assets and reputation.

Emergency response programs are tailored using area-specific hazard and risk assessments, with the training and equipment for each emergency response team based on local response requirements. Each team is supported by local management teams and a multi-discipline corporate emergency response team.

Plans and procedures are based on the Incident Command System, a standard emergency response model used in Canada and internationally to provide an effective response across all operations. This system streamlines the response so that the most important actions are addressed in priority order and under clear accountabilities.

Regular cross-departmental exercises, and consistent, repeatable processes are an integral part of being prepared for, and improving the response to, an emergency. Where appropriate, coordination with third-party emergency responders is tested in major exercises.

Site-specific hazard identification and planning, equipment sourcing and training enhance the Company’s readiness at facilities where there is the potential for a higher-consequence event.

The Company participates in additional training as an active member of spill cooperatives and preparedness programs. It is a member of Emergency Response Assistance Canada, which provides response plans for the transportation of dangerous goods. Husky has Transport Canada-approved Emergency Response Assistance Plans for flammable materials shipped by rail or road.

Husky’s 24-hour emergency phone line provides members of the public, emergency responders and customers with immediate access to information, and allows staff to promptly initiate a response. The number is posted on www.huskyenergy.com, on signs at all facilities and is part of all public notification material.

Husky develops contingency plans and measures to mitigate the impacts should a business-interrupting event occur. Risks are identified for all processes within specific business units.

Response strategies for individual departments are documented and tested each year to ensure the business continues to operate during an event. Awareness sessions educate employees on their responsibilities, while annual exercises test the capabilities of the Company’s continuity plans, often with multiple departments participating to improve efficiencies and identify any gaps in the process.

In accordance with the Company’s Code of Business Conduct, employees are expected to conduct themselves in an ethical manner, with a high degree of personal integrity. Employees take mandatory training so that they are aware of their responsibilities.

The Company has a confidential and anonymous Ethics Help Line where employees, contractors and other stakeholders can report perceived breaches of the code of conduct.

The Ethics Help Line is managed by EthicsPoint, an independent service provider. Those reporting can choose to provide information anonymously. Information from submissions is captured and submitted to the Ethics Help Line Committee, which includes representatives from the legal, audit, security, health, safety, environment and human resources departments.