EGCO Group revised risk management policy and guidelines to include more risk factors along with Enterprise-Wide Risk Management while still maintaining the balance between risk and return, which is an important foundation for sustainable long-term value-added for our stakeholders.
EGCO Group’s risk management policy also applies to all subsidiaries. The Company encourages partners, suppliers, and other related parties to acknowledge the risk management policy to operate in the same direction.
EGCO Group applied the COSO Enterprise Risk Management - Integrated Framework 2017 (2017 COSO ERM) on organization-wide risk management. We have established the “Risk Management Manual” to be in line with the 2017 COSO ERM as well as established Key Risk Indicators, which are both Leading Indicators and Lagging Indicators. The Company also encourages our employees and facilities to appropriately implement the manual and the risk management information system. The risk management information system (RMIS) is a company’s solution used to aggregate risk data and to help risk owners assess and manage their key risks. To increase the effectiveness of the risk indicators, EGCO Group conducted Sensitivity Analysis and Stress Testing on business significant topics, such as financial risks, climate change risks, changes in water availability and water quality risks, and other risks – for example, 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 risks, and personal data protection risks, etc.