Shawcor’s business model is based on the principles of ensuring the Company maintains close involvement with customers, develops innovative technologies and products, pursues low cost and efficient manufacturing and service delivery, continues global leadership in its core offerings and continues to have financial strength and strong long-term fundamentals at its foundation.
The Company’s business model and organizational capabilities are supported by value-added corporate functions to support the enterprise and the growth of business and operating leadership which are responsible for the primary operating and profit and loss units of the Company.
Corporate functions are focused on the long-term horizon and building the standards, systems, tools and capabilities to deliver effective service. Their mandate includes functional management, program development/execution and capacity-building. Operating executives are focused on general management, sales and business development, operations and product/service quality, strategic and business planning and compliance with policies, standards and practices.
Shawcor is building organization capability based on three business segments: Pipeline and Pipe Services, Composite Systems, and Automotive and Industrial. While each operation has their own growth prospects within their respective market, we link many of the discrete products and services they deliver into complete value-added solutions that address major industry and customer challenges.
Management regularly review the Company’s operational systems and processes and develops new ones as required. Key operational programs utilized by Shawcor in the year ended December 31, 2019 include systems and controls over project bidding, capital expenditures, enterprise risk, internal controls over financial reporting, product development, HSE management and human resource development. In addition, the Shawcor Management System (SMS) program has been implemented to increase operating efficiency and achieve cost savings in each of the Company’s operating businesses.
Shawcor’s Enterprise Risk Management (ERM) System provides our Board of Directors and senior management with assurance that risks in our businesses are continuously identified, assessed, monitored and mitigated through management actions. ERM supports our ability to consistently deliver world-class operational excellence and provide solutions to our customers’ biggest challenges. Shawcor’s risk management framework includes operational risk management, business and strategic risk management, risk oversight and governance and our comprehensive audit program.
Together, our business model, management systems, operating conditions, organizational structures, processes, procedures, standards and Code of Conduct form a system of internal control that governs how we operate and manage risks in our business and value chain.