The Company maintains and updates its systems to identify, analyze, manage and mitigate risk, overseen by the Risk Management Division. Given the wide range of normal business risks and other extraordinary risks, emphasis is on continuous development of structured and systematic processes that result in sustainable business operations and enhanced performance.
Within the overall framework of risk management, the Risk Management Division has primary duties to assist the BOD in developing, executing, reviewing and strengthening Company-wide strategies to minimize our business risks.
In fulfilling its responsibilities, the Risk Management Division collaborates closely with the Internal Audit Division, the Audit Committee and the Company’s external auditors on identifying, evaluating and mitigating risks by reviewing risk parameters in various areas, particularly critical systems, areas affecting costing and/or profitability, fraud, and abuse of authority.
The Company applies specific steps based on the following general strategies in the area of risk management:
- Integrate risk management processes into the Company’s business processes;
- Increase risk awareness at all levels;
- Encourage regular feedback on risks faced by the Company;
- Increase risk competency of risk management personnel through training;
- Development of business continuity management through business planning.
The Company’s overall risk management objective is to minimize, as much as possible, the probability and/ or impact of foreseeable threatening occurrences/ exposures and to optimize achievement of corporate objectives.