EGCO Group designed risk management and internal audit to be appropriately independent of one another. Risk Oversight Committee is chaired by an independent director, with directors and the president serving as members, and the executive vice president of corporate strategy serving as secretary.

Their duties and responsibilities include assessing, reviewing, auditing, and advising on risk management policies and guidelines; setting corporate risk appetite and risk tolerance levels; overseeing key risks identification, assessment, and probability; monitoring and assessing risk management performance; making recommendations and providing support to the Board of Directors and management on effective risk management. The committee reports regularly to the board regarding the risk management performance and implemented risk mitigations.

At the management level, Risk Management Committee comprises all senior executive vice presidents as members of the committee with the president as the chairman and the Risk Assessment Division manager as secretary. The Risk Management Committee’s responsibilities are to conduct risk management in compliance with EGCO Group’s risk management policy and guidelines, promote and support risk management activities organization-wide including operational level, as well as report to the Risk Oversight Committee and the BoD regularly. In the case of emerging risk factors that could impact the Company significantly, the Risk Management Committee shall report promptly to the ROC and the Board of directors.

Additionally, EGCO Group has a Risk Assessment Division which functions as the secretary of the Risk Management Committee and the assistant secretary of the Risk Oversight Committee. The division is responsible for monitoring and reporting the Company’s risk management practice, cooperating with the risk owners on risk identification, risk assessment, risk response, and reporting to Risk Management Committee.

EGCO Group assigned Risk Management Support and Internal Audit to assess the Company’s activities, inclusive of operational level activities, independently both in Thailand and overseas, and advise related parties on appropriate and effective internal risk management. They are to report directly to the Audit Committee, who will approve internal audit plans, appoint and release personnel, and assess the Internal Audit Manager’s performance to ensure their independence. The Risk Assessment Division is required to report risk management performance to the audit committee every 3 months.

Framework for Corporate Risk Management