Overview of Risk Management System Implementation

In line with its business growth, the Company understands that operational and financial performance is very vulnerable to various risks. Therefore, risk management practices based on good principles are important to ensure healthy and sustainable business growth. Realizing this, the Company has applied a directed and controlled risk management system. The risk management implementation is performed through identification, monitoring, control and risk management by each risk owner.

The Company’s Risks and Their Mitigation Measures

The risks which the Company encountered and their management are as follows:

Review of Risk Management Effectiveness

To optimize risk management implementation in the Company, an audit is conducted every 1 semester by Internal Audit. Evaluation results are then reported to the Board of Directors and Board of Commissioners, through the Audit Committee, to obtain inputs regarding steps to improve risk management implementation in the Company. Although the Company’s risk management implementation has gone well up to 2018, management continues to take best steps to improve control of potential risks to the Company