Risk management is an important factor Banpu Power has used for operating its businesses to grow stably and sustainably in both investments and project constructions as well as productions to meet the targets set. Currently, emerging risks relating to changes in business, environment, society, corporate governance, and stakeholder expectations are arising very quickly. Therefore, the Company needs to be vigilant in order to adapt itself to the risks arisen.
The risk management of Banpu Power is under supervision of the Board of Directors through the Audit Committee. The Risk Management Committee (RMC) has been set up with the roles to manage stakeholders and improve the risk management responsibilities at operational levels. The RMC consists of the chief executive officer (CEO) and senior management whose duties are as follow:
- Assessing and managing risks to mitigate any risk effects on the operational performance of Banpu Power
- Lending supports relating to policies in order to help mitigate risks efficiently and to create awareness on any risks arisen from the activities implemented by Banpu Power
- Supporting internal and external resources necessary for managing risks efficiently.
Banpu Power has declared the risk management policy with regular updates. A direct responsibility unit was established to coordinate with all departments to drive the effective risk management throughout the organization. A mechanism for finding and identifying key business risks covering the areas of environment, social, and corporate governance has been used in the annual corporate strategy development procedure. This is in line with the strategic direction of Banpu Power and related to the context of corporate sustainability management. The likelihoods and impacts on stakeholders have been assessed in order to consider priorities prior to defining them as a list of organizational risks and assigning the responsible persons to mitigate risks to be at the level accepted by the organization. Moreover, a progress of risks management has been regularly monitored while risk issues have been continuously reviewed. Additionally, Banpu Power has integrated risk management principles into various procedures within the organization so as to raise awareness on business uncertainty and promote risk management as part of its operations in preparation for the events arisen in the future.
As for managing risks relating to business interruptions, the RMC meetings have been convened to monitor such risks and risks management results according to the risk mitigation plan. The risk management system review has been reported to the Internal Audit Committee and the Board of Directors on a quarterly basis.
To maximize the efficiency of risk management, Banpu Power has integrated risk management into its business plan, giving high attention to value creation for the company and its stakeholders. Consequently, the risk correlation principle has been used to analyze correlations of each risk in both positive and negative aspects. The risk management process of Banpu Power starts with defining objectives according to the business plan and allocating them into the business units, departments, and sections. The likelihood and impacts of such risks have been assessed along with preparing practice guidelines to mitigate risks possibly arisen. The risk management process also includes reporting the results to commander-in -chief and supervisors as well as monitoring the progress on an ongoing basis.
Over the past several years, the results of integrating risk management with the business plan of Banpu Power have been able to further enhance the company’s operational strategies. Besides other committees involved with risk management such as the financial management committee meeting to monitor financial risks has been convened every month, etc.
- 100% coverage of enterprise risk management system
- 92% coverage of ESG issues in the enterprise risk management system
- Launched a C-Rim application, an integration of risk management with legal operations audits.
- Conducted the ESG risk assessment at all business units Banpu Power has direct management control.
- Announced Information and Cyber Security Policy, a measure to manage the cyber security risks which considered as one of emerging risks of Banpu Power.
Information and Cyber Security Policy