Internal Control and Risk Management

The Risk Management and Sustainable Development Committee

The Risk Management and Sustainable Development Committee consists of independent director, managing director and top management in related departments. The Company prioritize the importance on sustainable development which covers in 3 dimensions namely: environmental dimension, social dimension and dimension of good corporate governance.

The working group conducts risk assessments at all levels of the organization which covers strategic risks, Operational risk, financial risk, liquidity risk, investment risk, and regulatory and legal risks by assessing, analyzing and prioritizing risks, determine guidelines and strategies for risk management in each matter. The Company has managed to deal with high, medium, low risks, respectively, which has been carried out continuously from the past to the present to manage the company’s corporate risks to an acceptable level at reasonable costs.

The Company has established a system to monitor and report on risk management results regularly, promptly and timely. The management has a risk monitoring process through the Risk Monitor Tools in the form of Computer Based on the company’s EIS system. The system will be updated every month and will report it to the risk owner for use in monitoring, analyzing, evaluating and managing risks. The Company holds meetings to monitor risk management results at least twice a year.

In addition, because the Board of Directors has realized and given importance to sustainable development, therefore, the Risk Management and Sustainable Development Committee has been assigned to establish guidelines and frameworks for sustainable operations and planning for the preparation of sustainable development reports as a guideline for the implementation of the Company’s sustainable development process which is considered an important mechanism for achieving success in business operations.