Risk management is a key component of the Company’s decision making process in a changing business environment. Enterprise risk management enables the Company to build resiliency and sustainability. It is an evolving process that requires constant monitoring as the Company grows. Whilst even the most comprehensive system of risk management and internal controls cannot fully eliminate all risks, the framework enhances the Company’s understanding and articulation of risk-reward trade-offs for decision making that is commensurate with its risk tolerance.
The Board of Directors of the Company (BOD) is responsible for the governance and oversight of risk by ensuring that senior management maintains a sound system of risk management and internal controls to safeguard shareholders’ interests and the Company’s assets, as well as to comply with the prevailing laws and regulations. The BOD determines the nature and extent of the significant risks which the BOD is willing to take in achieving their strategic objectives.
The Company’s risk management process comprises of a disciplined and repeatable interaction structure including risk evaluation of strategic alternatives and operational decisions. These structures serve as a forum for the management to highlight both favourable and adverse factors affecting the business and its performance and associated risks, and in turn creates visibility for the BOD and relevant stakeholders. The BOD members and management collectively determine the materiality of the risks and appropriate strategies to address them.
Further explanation on the Company’s risk management, including its internal control system is elaborated in Integrated Annual Report 2021.