Through our Enterprise Risk Management program and internal operational audits, Chesapeake takes a comprehensive approach to identifying, assessing and managing sustainability-related risks. We integrate climate-related risks into our ERM process, helping to ensure an effective and cohesive review of the issue and its physical and transitional risks. To learn more, read our Climate-Related Risk Analysis.

Risk Management Process

1

Identification

2

Assessment

3

Evaluation

4

Mitigation or Treatment

5

Monitor and Report

We use the Three Lines of Defense as our framework for risk management, helping to ensure all employees play a role in risk identification and mitigation. 

1st Line of Defense

Owns and Manages Risk (Operational and Service Groups)

Encourages the department and business unit level to identify and control risks at the front lines of the organization

Internal risk owners (senior managers and subject matter experts) regularly review and assess company risks

An annual risk survey asks employees throughout the organization to review existing risk drivers and identify emerging risks

2nd Line of Defense

Oversees Risks, Controls and Compliance (Internal Controls)

Provides impartial enterprise risk and compliance analyses

3rd Line of Defense

Provides Independent Assurance (Internal Audit)

Uses a standardized, objective process to identify risk-based audits of department and business unit controls and processes

Reports directly to the Board Audit Committee

Ready and Responsive in Emergencies

Should a risk escalate into an emergency, our Emergency Response Plan (ERP) provides employees with the framework and action steps critical for responding to an incident in a safe, rapid and efficient manner. Our priorities are protecting people and the environment, minimizing impact and limiting operational losses, in tandem with regulatory compliance.

Partnering with First Responders

Through our First Responder Outreach program, members of our Emergency Preparedness and Response group and Operations teams interact regularly with local responders to understand department capabilities and establish partnerships.

We also offer information sessions covering drilling, completions and production site equipment, potential hazards and key industry terminology to provide valuable safety awareness for fire responders.

Many of our operational sites are served by rural, often volunteer, fire departments. Given their limited resources, we donate financially to meet local department needs and enhance community safety.

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