Governance
RISK MANAGEMENT ONEOK's risk management process, which includes the evaluation of certain ESG risks, focuses on the assessment of longer-term developing risks. The assessment process includes a series of meetings and reviews with executive and senior management to identify, evaluate and prioritize external developing risks over the next decade. This analysis of longer-term developing risks supplements our legacy Enterprise Risk Management (ERM) process, which focuses on a one-year time horizon and shorter-term risks. Overseen by our chief financial officer, the ERM process and longer-term developing risks assessment is a key part of our annual strategicplanning efforts. The ERM and longer-term assessment processes provide a structure for ongoing risk assessment dialogue with executive management and facilitates discussions between ONEOK’s board and executive management regarding the effectiveness of risk-management practices, controls and capabilities, risk exposure and guidance on when to elevate certain key risks for discussion at the board level.
Executive management provides periodic briefings and informational sessions for the board on the significant risks that our company faces and how we’re seeking to control and mitigate those risks. In some cases, risk oversight is addressed as part of the full board’s ongoing engagement with the chief executive officer and executive management. The board reviews management’s assessment of the various operational and regulatory risks facing our company, their relative magnitude and management’s plan for mitigating these risks. This review is integral to the board’s review of ONEOK’s business strategy at its annual strategic planning meeting and at other meetings as appropriate. In certain cases, a board committee is responsible for oversight of specific risk topics.
TAX GOVERNANCE ONEOK’s approach to tax prioritizes compliance and risk mitigation. Our overarching tax strategy, including the consideration of tax policy, standards and principles, is overseen by our chief financial officer and is embedded within our company’s business segments and financial planning function. Additionally, members of the ONEOK Board of Directors Audit Committee review tax planning efforts and taxing authority developments. We engage with multiple groups and taxing authorities to monitor tax legislation. Our corporate tax activity is based within the U.S. and seeks to comply with applicable laws at the local, state and federal levels.
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