Risk management is a key factor BPP has used for operating its businesses to stably and sustainably grow in both investments and project constructions as well as productions in order to meet the targets set. Presently, emerging risks driven from business transitions, environment, society, corporate governance, and stakeholder expectations are arising very quickly. BPP, therefore, needs to be vigilant in order to adapt itself to the arising risks as well as look for investment opportunities in the new businesses derived from changes happening.
The risk management of BPP 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 is comprised of the chief executive officer (CEO) and senior management whose duties are as follow:
- Assessing and managing risks to mitigate any risks possibly affecting BPP’s operational performance.
- Providing policy related supports in order to help mitigate risks efficiently and to create awareness on any risks arisen from the activities implemented by BPP.
- Supporting internal and external resources necessary for efficient risks management.
BPP has declared its risk management policy with continued updates. A direct responsibility unit was established to coordinate with all departments to push effective risk management forward across the organization. A mechanism to find out and identify key business risks covering the areas of environment, society, and governance (ESG), has been provided in the annual corporate strategy development procedure. This is in line with BPP’s strategic directions and related to the context of corporate sustainability management. The impact likelihoods to stakeholders have been assessed in order to consider priorities prior to defining them as a list of organizational risks. The responsible persons have also been assigned to mitigate risks to be at the level acceptable by the organization. Moreover, a progress of risks management has been regularly monitored, while risk issues have been continuously reviewed.
Additionally, BPP has integrated the 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 any events arisen in the future. The risk management committee meetings have been convened on a quarter basis in order to monitor risks and risks management results according to the risk mitigation plan as well as report the results of risk management system review to the internal audit committee and the Board of Directors.
BPP has integrated risk management into its business operating plan, paying great importance on values creation for itself and its stakeholders in order to maximize risk management efficiencies. As a result, the risk correlation principle has been used for analyzing correlations of each risk in both positive and negative aspects. BPP’s risk management process starts with defining objectives according to the business plan and allocating them into the business units, departments, and sections. For identifying risks, the operational level employees who have knowledge and expertise in that operation will determine operational risks under his/her areas in details. The likelihood and impacts of such risks will be assessed along with developing 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 regularly.
Over the past several years, the outcomes of integrating risk management into BPP’s business plan, have been able to further enhance the company’s operational strategies. In addition, other associated committees such as the financial management committee meeting has been convened every month to monitor financial risks, etc.
In terms of new business investments, BPP has conducted a comprehensive risk assessment on return on investment and ESG of each project. The assessment results and risk mitigation plans will be presented to the investment committee in order to ensure that BPP’s investments be assessed and mitigate risks properly.
- Deploying a risk management system covering all business units equivalent to 100%.
- Coverage ratio of risk management system associated with ESG issues was 97%.
Key Activities and Projects
Information and Cyber Security Policy
Appointment of Banpu Group’s Global Information Security Officer (GISO)
Risk Management Committee Charter
Risk Appetite Policy