At Huntsman Inc., a global manufacturer and marketer of differentiated chemicals traded on the NYSE under HUN is headquartered in Salt Lake City. Huntsman has a very developed ERM program and has a very well established risk communication process to the Board of Directors. “The Board is responsible for overseeing the company’s management of risk. Their Board strives to effectively oversee the Company’s enterprise-wide risk management in a way that balances managing risks while enhancing the long-term value of the Company for the benefit of the stockholders. To understand the Company’s risk philosophy, the Board of Directors maintains an active dialogue with management to establish a mutual understanding of the Company’s overall appetite for risk . The Board expects frequent updates from management about the Company’s most significant risks so as to enable it to evaluate whether management is responding appropriately.
Huntsman’s Board of Directors relies on each of its committees to help oversee the risk management responsibilities. Their Audit Committee discusses with management the Company’s major financial risk exposures and the steps management has taken to monitor and control such exposures, including the Company’s risk assessment and risk management policies. The Compensation Committee helps the Board to identify the Company’s exposure to any risks potentially created by their compensation programs and practices. Their Nominating and Corporate Governance Committee oversees risks relating to the Company’s corporate compliance programs and assists the Board and management in promoting their organizational culture that encourages ethical behavior.
Each of these committees is required to make regular reports of its actions and any recommendations to the Board that address the overall risk oversight function. During each regularly scheduled Board meeting each year, the full Board also reviews the Company’s long-term strategic plans for a particular division and the principal issues that include the foreseeable risks that a division expects to face in the future.” ( from the Huntsman Notice of the 2010 Annual Meeting to Shareholders )
