PotlatchDeltic utilizes an Enterprise Risk Management (ERM) framework to identify, assess and mitigate significant risks facing the Company, including risks related to a range of corporate responsibility topics. The Audit Committee of the Board of Directors and senior management have primary responsibility for the oversight of risks facing the Company. Certain material risks facing our business are discussed in our annual report on Form 10-K under Part I - Item 1A. Risk Factors.
The Risk Committee, comprised of senior managers of the Company, conducts a risk assessment process, which includes evaluating the risk universe, emerging risks, and the risk attributes of likelihood, impact, velocity, and mitigation control strength. Risks are mapped into a matrix which identifies the significant risk areas for internal focus.
The Risk Committee Chair meets with the Audit Committee to discuss key inherent risks the ERM process has identified, current mitigation measures, and the resulting residual risks. This meeting also provides the Audit Committee an opportunity to share their key risk areas of concern. The full Board of Directors also reviews the results of the ERM process. As business leaders prepare their strategic plans for the year, they incorporate risks and mitigation measures into their plans, as appropriate.
Specific risks related to environmental issues and climate change are identified, assessed, and mitigated where feasible as part of our ERM process. In addition, our Environmental Management System (EMS) and Corporate Responsibility review, which are conducted annually at the business unit level, evaluate business risks and opportunities, including climate-related risks and opportunities.
The Corporate Responsibility Management Committee identifies and reviews climate-related risks across our business units and prioritizes them based on environmental and financial impact. PotlatchDeltic will continue to enhance its ERM framework for our businesses to identify and seek to mitigate emerging or shifting risks and opportunities.
Forward-Looking Statements
This release contains certain forward-looking statements within the meaning of the federal securities laws. Words such as “annually,” “continue,” “opportunity,” “plans,” “seek,” “will,” and similar expressions are intended to identify such forward-looking statements. These statements reflect management’s views of future events based on assumptions and are therefore subject to known and unknown risks, uncertainties, and other factors, and are not guarantees of future conduct, results, or policies. Please view the Cautionary Statement Regarding Forward-Looking Information on page 134 of PotlatchDeltic’s 2022 ESG Report.