Risk Management System
The Company aims to identify, measure, analyze, monitor, and control all forms of risk that would affect the Company.
The Audit Committee reviews the effectiveness of risk management systems employed by the Company. The Audit Committee periodically reviews the risk management system of the company through its meetings and review of required reports. The adequacy of the risk management system is reviewed annually by the Audit Committee. On a quarterly basis, specific risk management processes and findings are reviewed and evaluated.
The Audit Committee shall assist the Group’s Board of Directors in its fiduciary responsibility for the over-all effectiveness of risk management systems, and both the internal and external audit functions of the Company. Furthermore, it is also the AC’s purpose to lead in the general evaluation and to provide assistance in the continuous improvements of risk management, control, and governance processes.
The Audit Committee aims to ensure that:
a. Financial reports comply with established internal policies and procedures, pertinent accounting and auditing standards and other regulatory requirements;
b. Risks are properly identified, evaluated, and managed, specifically in the areas of managing credit, market, liquidity, operation, legal, and other risks, and risk management;
c. Audit activities of internal and external auditors are done based on plan, and deviations are explained through the performance of direct interface functions with the external and internal auditors; and
d. The Group’s Board of Directors is properly assisted in the development of policies that would enhance the risk management and control systems.
Enterprise Risk Management Group (ERMG)
The ERMG was created to be primarily responsible for the execution of the enterprise risk management framework.
The ERMG’s main concerns include:
a. recommending risk policies, strategies, principles, framework and limits;
b. managing fundamental risk issues and monitoring of relevant risk decisions;
c. providing support to management in implementing the risk policies and strategies; and
d. developing a risk awareness program
The Compliance Officer assists the Board of Directors in complying with the principles of good corporate governance. He shall be responsible for monitoring actual compliance with the provisions and requirements of the Corporate Governance Manual and other requirements on good corporate governance, identifying and monitoring control compliance risks, determining violations, and recommending penalties on such infringements for further review and approval of the Board of Directors, among others.