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Risk Management

At GeoPark, we have a strong risk management culture with responsibilities distributed throughout the organization. Our framework systematically identifies, assesses, and mitigates events that could affect the achievement of our objectives through the analysis of gaps, threats, and potential obstacles. Each risk is managed with specific mitigation measures and control indicators that enable proactive management of our exposure.

RISK MANAGEMENT CYCLE

Continuous 5-Stage Process

We implement a five-stage risk management cycle that allows us to anticipate and proactively respond to potential events. Each phase of the cycle includes specific methodologies, responsible parties, and indicators that ensure early identification, rigorous assessment, effective mitigation, continuous monitoring, and transparent communication of our material risks.

Risk Exposure Management

RISK APPETITE

We accept controlled and properly understood risks in order to create long-term value and capture opportunities related to:

Profitable growth
Financial sustainability
Market resilience

RISK TOLERANCE

We have zero tolerance for events that compromise life or the environment. This includes:

Fatalities or major safety incidents
Significant environmental impacts
Ethical breaches or violations of licenses and permits

Corporate Risk Matrix

Learn more about the risks we have identified as material, their level of exposure, and the mitigation measures implemented.

View our Corporate Risk Matrix

Risk Culture

Risk culture is a fundamental component of GeoPark’s corporate governance. Risk management is a shared responsibility that goes beyond regulatory compliance and is part of everyday decision-making at every level of the organization. We strengthen this culture through:

Training and Awareness

Periodic training programs aimed at the Board of Directors and the Executive Team, designed to ensure a common understanding of the risk framework, strengthen strategic oversight, and align the organization with the Company’s risk profile.

Operational Ownership

Through calibration sessions with field teams, we incorporate real operational experience into risk identification and assessment. Process owners actively participate in the periodic updating of the corporate matrix.

Incentive Schemes

Variable compensation is aligned with compliance with the Corporate Balanced Scorecard, which includes KPIs associated with risk management.

Technological Support

We have a support tool based on artificial intelligence trained on our internal methodology to facilitate access to risk information and promote the consistent application of the corporate framework. It does not replace professional judgment or formal supervision and control mechanisms.

Governance, Oversight and Monitoring

Board of Directors / Board Committees

Strategy and Risk Committee

Detailed oversight. Reviews the key risk framework, strategic alignment, interdependencies, and recommends actions to the Board of Directors.

Audit, SPEED/Sustainability, Compensation and Technical Committees

Oversight of risk management related to financial, ethical, and cybersecurity matters.

Role of the Board of Directors

Highest governing body. Holds ultimate responsibility. Approves the risk framework and risk appetite, oversees controls, and ensures integration into the strategy.

CEO / Management

CEO

Leads the implementation and effectiveness of the framework. Promotes the Risk Culture. Ensures resources and escalates critical matters to the Board of Directors.

Executive Team

Responsible for direct risk management within their areas. They identify, assess, mitigate, and monitor operational risks. They own the controls and action plans.

Management

Risk Management Team

Coordinates and articulates the corporate framework. Defines methodologies, consolidates the risk matrix, and reports to executive levels.

Internal Audit

Independent assurance function. Evaluates the effectiveness of risk management, internal controls, and regulatory compliance.

GeoPark Employees

All Employees

All GeoPark employees are responsible for identifying and reporting risks every day, in every activity. They act in alignment with the Risk Culture and ensure that risk management is everyone’s responsibility.