52
Annual Report
2013
Under the current competition and market
condition, all businesses have to face changes
and risks, including economic fluctuation in and
outside the country. Realizing the importance of
effective risk management to the ability to achieve
business goal, the Company has incorporated
efficient risk management system across the
organization in parallel to the strategic planning,
analysis, assessment, monitoring and management
of both internal and external risk factors. The
Board of Directors and the Risk Management
Committee are responsible for such activities to
maintain the risks level to the acceptable level.
The Investment Committee, which is appointed
by the Board of Directors, is responsible for
considering investment in both Greenfield and
Brownfield projects. Risks factors are considered
thoroughly based on feasibility study that
covers technical, financial, legal, community,
environmental and other factors that may affect
or present obstacles to the project operations,
as well as sensitivity analysis, management of
projects under construction and project cost
control. These factors are carefully studied in
order to minimize possible loss. The study report
is then submitted to the Board of Directors for
consideration. Considering the importance of
risk management through the assessment of risks
that may affect the Company’s operation, the
Company has set objectives for risk management
as follows:
Identifying critical risks and risk management
that may affect the Company’s ability to
achieve its business goal according to its
strategic plan
Managing risks related to the operation
of projects under development to best
address investment goal and commercially
operating project
Risk Factors
