Risk Culture

EGCO Group realizes that cultivating a corporate risk culture is a crucial factor for the success of organizational risk management. The company encourages all employees to be aware of risks and understand that it is everyone’s responsibility. The importance of risk management is therefore communicated to the directors, executives, and employees at all levels through various channels

Director Risk Management Experience
Mr. Kulit Sombatsiri Mr. Kulit Sombatsiri has served as the chairman of EGCO Group since 2020 and concurrently holds the position of chairman of the Investment Committee at the same time. He is an executive of many organizations in the energy sector including the chairman of the Electricity Generating Authority of Thailand (EGAT) which is EGCO Group’s main shareholder, and permanent secretary of the Ministry of Energy. Mr. Kulit Sombatsiri takes part in conducting risk evaluation at the project level before making an investment decision. He has expertise in the governance of electricity and energy businesses, engineering, accounting, finance, economics and business administration, strategic and business planning, as well as human resource development.
Dr. Pasu Loharjun Dr. Pasu Loharjun has been EGCO Group’s lead independent director since 2018. Concurrently, he serves as the chairman of the Corporate Governance and Sustainability Committee and a member of the Nomination and Remuneration Committee. He also holds chairmanship positions in other organizations, including the Export–Import Bank of Thailand, the Thailand Institute of Scientific and Technological Research, and the National Metal and Materials Technology Center.
Mr.Paisan Mahapunnaporn Mr.Paisan Mahapunnaporn has been EGCO Group’s independent director since 2017. He holds the position of chairman of the Audit Committee and is a member of the Nomination and Remuneration Committee. He also holds executive and advisory roles in organizations within the industrial and consumer sectors, including a director and audit committee of Masstec Link Co., Ltd., and the advisor of VFoods Group and Piyasombat Group. Mr.Paisan Mahapunnaporn previously served as a member of the Risk Oversight Committee and participated in meetings between the Audit Committee and the Risk Oversight Committee. His expertise spans various domains including governance of electricity and energy businesses, engineering, legal and political matters, strategic and business planning, auditing, internal control, risk management, and human resource development.
Prof. Dr. Anya Khanthavit * Prof. Dr. Anya Khanthavit has been an independent director of EGCO Group since 2017. He serves as the chairman of the Risk Oversight Committee and is a member of the Audit Committee. He plays an important role in various industries including the director and Risk Oversight Committee of banks, universities, government agencies, state enterprises, the Ministry of Finance, and the Government Pharmaceutical Organization. Prof. Dr. Anya Khanthavit has considerable expertise in corporate governance, accounting, finance, economics, strategic and business planning, auditing, internal control, and risk management. He is also a member of the Audit Committee and chairman of the Risk Oversight Committee. He has considerable experience in risk management. Currently, he is the director and member of the Risk Oversight Committee of Kiatnakin Phatra Bank Plc.
Mrs. Wannipa Bhakdibutr Mrs. Wannipa Bhakdibutr has served as an independent director at EGCO Group since 2021. She is a member of the Nomination and Remuneration Committee and Corporate Governance and Sustainability Committee. She holds significant roles in other industries including serving as a director of Osotspa Group and an advisor to the Marketing Association of Thailand.
Mr. Poomjai Attanun * Mr. Poomjai Attanun has been EGCO Group’s independent director since 2021. He is a member of the Corporate Governance and Sustainability Committee and Risk Oversight Committee. He also serves as an advisor to the Minister of Transport. Mr. Poomjai Attanun has expertise in various areas including energy business, accounting and finance, business and strategic planning, infrastructure investment, and public-private partnership.
Mrs. Nujchanart Laohathaimongkol Mrs. Nujchanart Laohathaimongkol has served as an independent director of EGCO Group since 2022 and currently is a member of the Audit Committee. She holds executive positions in the finance industry and risk management. She serves as the assistant managing director of Viriyah Insurance PCL, CEO of VIG Car Rent Co., Ltd, a member of the Finance and Accounting Sub-committee of the Energy Conservation Foundation, and a member of the Accounting, Finance, and Investment Committee of the Thai General Insurance Association. Mrs. Nujchanart Laohathaimongkol has participated in meetings between the Audit Committee and the Risk Oversight Committee. Her expertise lies in corporate governance, accounting, finance, economics, and auditing.
Mr. Saharath Boonpotipukdee Mr. Saharath Boonpotipukdee serves as EGCO Group’s director and Investment Committee member. He plays a significant role in the energy industry including serving as the energy expert director of the National Climate Change Committee and Bio-Circular-Green Economy (BCG) Sub-committee: Energy, Material, and Biochemicals. Mr. Saharath Boonpotipukdee takes part in risk management at the project level before making an investment decision.
Mr. Nutthavutthi Chamchang Mr. Nutthavutthi Chamchang has been EGCO Group’s director since 2021 and concurrently serves as a member of the Corporate Governance and Sustainability Committee. He holds key positions within the energy industry including serving as deputy governor for Related Business at the Electricity Generating Authority of Thailand (EGAT) and as the president of EGAT Diamond Service Co., Ltd.
Miss Jiraporn Sirikum * Miss Jiraporn Sirikum has served as a director at EGCO Group since 2021. She also holds positions as a member of the Nomination and Remuneration Committee and the Risk Oversight Committee. She holds executive roles in the energy industry including deputy governor for Related Business, spokesperson, and assistant governor for Research, Innovation, and Business Development at EGAT. Miss Jiraporn Sirikum’s expertise encompasses various areas in the electricity and energy businesses, engineering, internal control and corporate risk management, strategic and business planning, corporate governance, and smart technology.
Mr. Shinichiro Suzuki Mr. Shinichiro Suzuki is a director and a member of the Investment Committee at EGCO Group. He also serves as the CEO of Diamond Generating Asia, Limited. Mr. Shinichiro Suzuki takes part in risk evaluation at the project level before making an investment decision. His expertise spans various areas in corporate governance, electricity and energy businesses, engineering, accounting, finance, economics, strategic and business planning, and international business.
Mr. Makoto Nogami * Mr. Makoto Nogami has been EGCO Group’s director since 2017. He also serves as a member of the Risk Oversight Committee. He plays a significant role in international operation management including serving as the manager of the International Business Management Division, International Business Unit of Kyushu Electric Power Co., Inc., and as a senior manager of the Asia Department of Kyuden International Corporation, Traffic Development Department and Power Plant Safety Improvement Department. His expertise lies in corporate governance, electricity and energy businesses, engineering, accounting, finance, economics, and international business.
Mr. Toshiro Kudama Mr. Toshiro Kudama has been EGCO Group’s director since 2019 and concurrently serves as the chairman of the Nomination and Remuneration Committee. He also holds senior executive roles in other industries i.e. serving as a senior CEO of JERA Co., Inc.
Mr. Naoki Tsutsumi Mr. Naoki Tsutsumi has been a director of EGCO Group since 2019 and concurrently serves as a member of the Investment Committee. He plays a significant role in the electricity business including as a senior officer of the Overseas Power Business Unit at JERA Co., Inc. Mr. Naoki Tsutsumi takes part in risk evaluation at the project level before making an investment decision. His expertise spans various areas including corporate governance, electricity and energy businesses, engineering, strategic and business planning, and human resource development.
Mr. Thepparat Theppitak * Mr. Thepparat Theppitak has been the president of EGCO Group since 2019. Concurrently, he is a member of the Investment Committee, Corporate Governance and Sustainability Committee, the chairman and a member of the Risk Oversight Committee, and a member of the Cyber Security Committee. In addition, he plays a crucial role in the electricity business including serving as deputy governor for the Governor’s Office, deputy governor for Power Plant Development and Renewable Energy of EGAT, the president of EGAT Diamond Service Co., Ltd, and an assistant governor for Renewable and New Energy, and director of Mechanical Maintenance Department. Mr. Thepparat Theppitak’s expertise lies in corporate governance, electricity and energy businesses, engineering, strategic and business planning, and human resource development.
Mr. Yuichi Harada Mr. Yuichi Harada has been a director of EGCO Group since 2023 and concurrently serves as a member of the Risk Oversight Committee. He holds key roles in international operation management including a directorship at the International Business Risk Management Division, International Business Unit of Kyushu Electric Power Co., Inc. He serves as a senior manager of the Asia Department and general manager of the Risk Management Department and the Operation Department of Kyuden International Corporation. His expertise lies in the governance of electricity and energy business, engineering, laws and politics, international business, and risk management.
*Risk Oversight Committee as of December 2023

Risk Training

Focused training throughout the organization on risk management principles are provided. EGCO realizes the importance of risk management under digital transformation are trained to employees and the Board of Directors’ awareness on risk management are enhanced through meetings and reports.

Level Risk Culture Enhancement and Focus Training
Board of Directors
  • Submit the minutes of the meeting to the Secretary Department for further distribution to the new members of the Risk Oversight Committee.
  • Provide training for the new members of the Risk Oversight Committee.
  • Management monitors and presents any significant emerging risks along with appropriate mitigation plans.
Senior Management
  • Providing training on risks and how to use a Risk Management Information System (RMIS).
  • The Risk Assessment Department provides regular reports on emerging risks and conducts monthly monitoring programs.
  • Applying other means of measuring or innovating for an effective risk culture.
  • Incorporating risk criteria in the project development, product development, and approval process.
  • Conducting performance reviews of senior executives and line managers based on KPIs relevant to risk management KPIs for monitoring and ensuring effective risk management implementation.
  • Receive financial incentives linked to risk management metrics.
Employee
  • Providing focused training throughout the organization on risk management principles)
  • Arranging annual risk seminars.
  • Providing training on risk management and how to use RMIS.
  • Inclusion of risk management criteria in the HR review process for employee evaluations.
  • Establishing measures allowing continuous improvement in risk management practices through the involvement of employees in a structured feedback process.
  • Distributing the corporate risk management manual, along with knowledge, news, articles, and activities related to risk management to all employees across various levels through radio broadcasting, notice boards, and the EGCO Group’s website.
  • Developing e-learning training materials.
  • Participating in the company’s risk management and internal control network.
  • Strengthening the capabilities of employees within the Risk Assessment Department.

Risk Metrics for Employees

EGCO group promote risk culture in the company through providing financial incentives incorporating risk management risk metrics for management employees. This is to foster a culture of accountability, performance, and sustainable success within the company.

Level Financial Incentives relates to Risk Management Metrics
Senior Management Senior executives to achieve of their Key Performance Indicators (KPIs) which are derived from the company’s Key Risk Indicators (KRIs) as well as qualitative indicators (i.e. risk management internal controls). The KRIs include both financial and non-financial risk factors that are in alignment with the Corporate KPI (2023 EGCO Corporate KPI), and are cascaded to various areas of the organization (e.g. business and group corporate Power Plants KPIs) for close monitoring and management. The KRIs are translated to each individual senior executive’s targets/ KPIs, which is linked to their incentives (Management Compensation Guideline: 3. Other Non-Financial Performance Indicators). The Nomination and Remuneration Committee evaluates the performance of senior executives based on their individual KPIs.
Line Managers For major risks to the company and achievement of Enterprise Objectives, Key Risk Indicators (KRIs) are set up and cascaded to various areas of the company (e.g. business and group corporate functions) for close monitoring and management. The KRIs include both financial and non-financial risk factors that are translated to relevant line managers’ individual goals/Key Performance Indicators (KPIs) in each function (e.g. no lost time injury, emission, good governance in terms of no corruption cases or complaints, etc.) This is related to the line managers’ financial incentives as their remuneration takes into account of both corporate and individual KPIs achievement.

In addition, risk criteria are incorporated to production development and approval processes. EGCO updated the Risk Management Manual to be in line with the COSO Enterprise Risk Management 2017 Framework as guidelines for the employees to abide by and use in their regular works, including during the product development and approval processes. Moreover, Key Risk Indicators (KRIs) are established in which employees are encouraged to utilize these KRIs within their operational processes. Furthermore, EGCO conducts a risk assessment for both internal and external factors that may have business impacts and establishes risk mitigation measures and operational plans to effectively manage the risks. These risk assessment results, as well as employees training/enhance awareness on risk management, all play a part and contribute to the production development approval processes.

EGCO Group encourages employees to report any abnormalities or risky incidents that could lead to negative impacts on business operations through EGCO’s internal system/service investigation request (SSIR) system or via other whistle-blowing channels.