The Company is determined and ensures that risk management measures are applied organization-wide, facilitating the development of the risk management system to comply with the COSO ERM (Enterprise Risk Management) framework, with an awareness of stakeholders throughout the entire value chain. It is to be ensured that key risks are being managed, covering the ESG initiatives (Environmental, Social and Governance), as well as placing emphasis on business continuity management to promote the goal achievement both in the short term and long term, being able to respond to business operations risks that are at an acceptable level. Meanwhile, business opportunities, added values and stability of the organization are to be maintained in a sustainable manner, in relation to the good governance principle and sustainable development goals.
The Company’s Board of Directors hereby regulates the risk management policy as follows:
- The organizational risk management procedures shall follow the good practical standard according to the COSO ERM framework, for the Company to operate the business under the acceptable risk level, to achieve objectives, targets, vision, mission and strategies, as well as respond to stakeholders’ expectations in an appropriate manner. In this regard, risk management is to be part of the compilation of execution plans, strategies, management and the Company’s operations.
- Executive and Management team members and all employees are risk owners who have full responsibility to identify and assess risks related to their job responsibility. They also determine the appropriate risk response to measure and to manage them.
- Risks that have impacts against achieving company’s objectives must be managed as follow:
- Identify and register risks in time.
- Assess likelihood frequency that risks will occur and their impacts.
- Managing the risks by taking into account of the costs and benefits from the risk treatment. By continually following up and monitoring of all risks for assuring that
- Follow up and monitor to ensure that the Company’s risks are being properly managed under the COSO ERM framework. The Risk Management and Sustainability working group will facilitate and ensure that risks are managed in every department and that they follow the policy and manual concerning risk management. The risk management outcome is to be reported to the Risk Management and Sustainability Oversight Committee at least once every quarter, especially risks that may impact on the business plan and the Company’s strategies, which are of high or very high level, as well as emerging risks. These are to be regularly reported to the Company’s Board of Directors.
- To create and promote Risk Management Culture to all executive and management and all employees to recognize the importance of risk management in their operation throughout the company.