Governance

Risk management is an integral part of good corporate governance implementation within the Company. An appropriate and comprehensive risk management will increase the Company’s certainty in achieving its goals and provide assurance that the Company can realize the existing business opportunities by minimizing potential risks and losses that may occur. Risk Management is a culture, in which its processes and structures are directed to appropriately manage the management of potential opportunities and adverse impacts. The Company is committed to implementing risk management in all processes and Company management as well as all operational activities of the Company.

The Company has established Risk Management Policies on all organizational lines in order to realize an effective and integrated risk management implementation. Such policy is continuously communicated to all stakeholders to be understood and evaluated for its effectiveness on a regular basis.

Risk Management Structure

Risk Management, as a part of the three lines of defense developed by the Company and Internal Audit, is the third line of defense.

Risk Management System

The risk management system is established to minimize and manage the risk of an event or activity that could have a negative impact on the Company’s achievement. Therefore, the risk management process in the Company’s environment is carried out in a comprehensive framework covering all risks identified as risks faced by the Company. The Company strives to manage the elements of uncertainty, both from the internal and external environments, which can influence the achievement of the Company’s objectives.