We face a number of risks, including, but not limited to, matters relating to the environment, regulation, competition, fluctuations in commodity prices and interest rates, and severe weather. Management is responsible for the day-to-day management of the risks our company faces, although our Board of Directors, as a whole and through its committees, has responsibility for the oversight of risk management. In fulfilling its risk oversight role, our Board of Directors must determine whether the risk management processes designed and implemented by our management are adequate and functioning as designed. Senior management regularly delivers presentations to our Board of Directors on strategic matters, operations, risk management and other matters, and are available to address any questions or concerns raised by the Board of Directors. Board of Directors meetings also regularly include discussions with senior management regarding strategies, key challenges, and risks and opportunities for our company.
Our Board committees assist our Board of Directors in fulfilling its oversight responsibilities in certain areas of risk. For example, the Audit Committee assists with risk management oversight in the areas of financial reporting, internal controls and compliance with legal and regulatory requirements and our risk management policy relating to our hedging program. The Governance, Compensation and Business Development Committee assists the Board of Directors with risk management relating to our compensation policies and programs.
The Chief Financial Officer is responsible for our Enterprise Risk Management (ERM) process. Our process requires conducting a comprehensive risk management assessment of each of our business segments. Some potential risks identified for our company include adverse economic conditions and geopolitical risk, performance in environment and safety, access to capital markets, cyber security, regulation, and competition. Risks are analyzed based on probability of occurrence, potential impact to the company, and the time frame that the impact would become apparent. The most significant risks, indicators and mitigating strategies are summarized in detail, and are reviewed and discussed with the Board of Directors. While some risks cannot be fully mitigated, Genesis Energy’s management teams have assessed the significant enterprise risks that the company faces and have mitigated them to the extent that is prudent and cost effective to the company.