We are committed to good corporate governance and strong risk management of health, safety and environmental risks.
Concho believes good corporate governance practices support transparency and accountability and further encourage good decision making for our long-term business success. The Board maintains oversight of our business strategy, risk management, governance and compensation practices. The Board continually seeks to ensure that our governance practices and board composition support effective oversight of our strategy, performance, and key risks and opportunities as they emerge and evolve.
At Concho, we continuously evaluate our approach to opportunities and risks. Risk management plays an essential role in our strategic planning process, and broad risk oversight by the Board and its committees is integral to our approach to risk management. Concho also maintains a comprehensive enterprise risk management (ERM) initiative that is led by members of our executive team. Throughout the year, our ERM process identifies, assesses and addresses mitigation of the significant and potential risks we face.