The business environment undergoes volatility and uncertainty situations. Paying close attention to an effective risk management not only prevents any possible adverse impacts on the business but also enhances the business opportunities for the Company.
The Company’s group-wide risk management is under the supervision of the Board of Directors through the Audit Committee. Risk management is integrated into all business processes, from strategic development to operational activities. At a corporate level, Risk Management Committee (RMC) chaired by the CEO has been established to monitor the high priority risks including the mitigation plans and performances at all business units. RMC reports performance to the Audit Committee and the Board of Directors on a quarterly basis. Risk appetite is reviewed regularly to align with the Company’s strategy with the latest revision in 2018. Apart from the RMC, there are also other meetings relevant to risk management such as the financial management committee and the commodity risk management committee.
At operational level, each business unit identifies, analyzes, mitigates, and monitors its risks with a requirement to set key risk indicator and submits a quarterly report to the enterprise risk management team. Environmental, social and governance (ESG) principles are also integrated as part of the risk identification and management process. It is also required for all business units with high ESG risks to develop the risk management plans.
To ensure that risk management is integrated into day-to-day operations, the Company developed the mobile application “Compliance risk management (C-RiM)” as a real-time compliance data platform and promotes employee awareness through various communication channels, such as e-newsletter, town hall and other activities.