1.4.1Risk Appetite

The Risk Appetite Statement 2021 sets the guidance and boundaries for the activities conducted by SBM Offshore in pursuit of its strategic objectives. The Management Board reviews the Risk Appetite Statement annually to ensure that SBM Offshore maintains the balance between risk and reward, relative to potential opportunities. The measurement of the underlying metrics is done every quarter and presented to the Audit and Finance Committee.

The significant parts of SBM Offshores Risk Appetite Statement are displayed below.

Material Topic

Activities guided by Risk Appetite, i.e. activities …


Ethics & Compliance

which are non-compliant with the Code of Conduct and related laws and regulations

Zero tolerance

for which a country or business partner is sanctioned, and/or whose decision makers do not share the same compliance principles

Zero tolerance

Employee Health Safety & Security

causing harm to people, damage to assets or the environment

No appetite

Human Rights

which are violations of SBM Offshore’s human rights standards

No appetite

Operational Excellence & Quality

resulting in non-quality before, during and after a project

Limited appetite

Retaining and developing employees

impacting the retention, development and health of SBM Offshores employees

Limited appetite

Economic Performance

resulting in balance sheet risk as a result of commercial opportunities for which the bankability cannot be reasonably confirmed

Limited appetite

severely impacting profitability of SBM Offshore

Limited appetite


resulting in an increase of emissions intensity of SBM Offshore’s products and deviations from net-zero ambitions

Limited appetite


exposing SBM Offshore considerably to cybersecurity risks

No appetite


exposing SBM Offshore to severe damage due to application of unproven technologies

Limited appetite

Energy Transition

exposing SBM Offshore to significant, unproven commercial models

Limited appetite

Market Positioning

resulting in M&A activities with high process safety risks and/or higher emissions

No appetite

Explanation of Guidance

Activities for which there is zero tolerance

Activities with risks for which SBM Offshore has no appetite

Activities with risks with a limited appetite

Refusal to accept any activity breaching this risk appetite

Risks within activities to be avoided with appropriate actions

Risks within activities to be mitigated and monitored