Baker Technology Limited
Sustainability
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51
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OPERATIONAL
RISKS
The Group recognises the need to
maintain operational resilience in the
faceof anyunforeseendisruptionsand
has put in place measures that allow
for pre-emptive identificationof areas
of potential exposure which can be
addressed tominimiseadverse impact.
Ouroperationsentailhigh riskactivities
such as hotworks, work at height and
confined space activity and major
lifting operations.As such, theGroup
observes stringent in-house safety
procedures andpolicies andcultivates
safeworkingmindsetsandhabits.There
are ongoing efforts to raise awareness
through trainings, toolboxmeetingsand
safety promotions as well as regular
site walkabouts and safety meetings
by thesafetycommitteewhich includes
subcontractor representatives.
Alloperational employeesof theGroup
are also required to undergo internal
safety briefings, external competency
training,orientationprogrammesandfire
evacuationdrills toensurepreparedness
and cooperation during emergencies.
Disruption of business activities can
also occur in a larger scale such as
an epidemic outbreak, flood, fire or
explosions that can have an adverse
impact toouroperations. In this regard,
the Group has in place, a business
continuityplan and responsemeasures
foranydisruptionofbusinessoperations
toensurepreparednessandcooperation
during emergencies. The Group also
has alternative sites for operations to
minimize downtime.
TheGrouphasalsoadopted ISO18001
certification to ensure adoptionof best
practicesandprocedures todeliverhigh
qualityproducts.Toensurecompliance
with all relevant laws and regulations
(including Ministry of Manpower
regulations,NationalEnvironmentAgency
rulesamongothers), theGroupmonitors
developments insuchregulationsthrough
regular engagement with regulatory
bodies,membershipandsubscription to
relevant associations and publications
andmainstreammedia.
FINANCIAL
RISKS
The oil and gas industry is cyclical
in nature which poses difficulties for
companiesinthissector.Havingsufficient
liquidityanda robust balance sheet has
allowed theGroup tomitigate this risk
howevertheBoardandseniormanagement
review theGroup’sstrategyandfinances
regularly to ensure continued liquidity
while identifyingmarketopportunities.
Initscurrentbearishclimate,moreindustry
players have succumbed to millions
of dollars of possibly unsustainable
outstanding debt and have seen their
marketcapitalisationreducesignificantly
as theirfinanceshavecomeunderstrain.
In order to ensure financial discipline,
the Group adopts a policy to collect
payment beforedeliveryor anup-front
collection of non-refundable deposits,
while closely reviewing outstanding
debts and debtors.
Likeanyglobaloperations, theGroup’s
activities are susceptible to foreign
currencyfluctuations, primarily inU.S.
dollar and Euro. Such risks are either
hedged naturallyby a sale or purchase
of a matching asset or liability of the
same currency and amount or, where
possible, the Group undertakes spot
conversionofexcess foreigncurrencies
toSingapore dollar.
