Risk management is an essential function at Rolls-Royce. The Rolls-Royce board has established a structured approach to risk management. Risks are formally identified and recorded in a corporate risk register, which is reviewed and updated on a regular basis. The article summarizes Rolls-Royce's risk management strategies.
Incorporated in 1906 by Henry Royce and Charles Rolls. Rolls-Royce is involved in the business of civil aerospace, defence, marine and energy. Rolls-Royce offers a broad range of engines for all types of aircraftranging from business jets to the largest airliners. It has succeeded over the last 15 years in raising its share of the global civil aero-engine market from 8% to 35%. About 55,000 Rolls-Royce aero-engines are actively in service in 135 countries with 500 airlines; 2,400 corporate and utility operators and more than 100 armed forces. The company is also a leading supplier of marine propulsion equipment and offers integrated solutions for both commercial and naval markets. Rolls-Royce is also strengthening its presence in the energy sector, taking advantage of the deregulation of energy markets and the growing usage of gas as a fuel for generating electricity.
Rolls-Royce began around 1904 when Henry Royce, who had been building cars for some years, met Charles Rolls who sold quality cars in London. The success of this partnership led to the establishment of the Rolls-Royce company in 1906. The company's move into the defence industry was motivated by World War I with the design and production in 1914 of their first aero-engine, `The Eagle'.
During the next two decades, Rolls-Royce set about promoting the gas turbine engine for the civil and military aviation industry. After a series of mergers during the 1960s, the two emergent forces in the UK aero-engine industry were Rolls-Royce and Bristol Siddeley. These two companies finally merged in 1966. |
