Risk Management Strategy
EGCO Group has reviewed and edited the risk management policy and guidelines to cover all risk issues in parallel with enterprise-wide risk management, while maintaining the balance between risk and return to increase added values for shareholders sustainably.
The risk management policy applies to all subsidiary companies. EGCO Group encourages its partners, suppliers, and all related parties to acknowledge the risk management policy and operate in a similar direction.
EGCO Group has applied the 2017 COSO Enterprise Risk Management - Integrated Framework (2017 COSO ERM) for risk management throughout its organization and has developed a “Risk Management Manual” in line with the 2017 COSO ERM. Key risk indicators are determined which are both leading indicators and lagging indicators. All employees and power plants are encouraged to apply 2017 COSO ERM and the manual as appropriate to their operations. To ensure the efficiency of risk indicators, EGCO Group has conducted sensitivity analysis and stress testing for risk issues significantly affecting the business including financial risks, climate change risks, changes in water availability and water quality risks, as well as other risks e.g. operational risks, market risks, strategic business risks, project management risks, tax management risks, human capital risks, compliance risks, supply chain management risks, IT security and cyber security risk, and personal data protection risks.