The Company faces a number of risks that may arise at any time and potentially disrupt the Company’s business activities, both internally or externally. In order to mitigate the impact of such risks, the Company has prepared preventive steps to be carried out on a continuous basis.
The Company also fosters a culture of risk awareness among its entire workforce to allow all employees to contribute to the management of risks and provide crucial recommendations to support the Company’s decision-making process. As such, the Company’s risk management system can run thoroughly in all of the Company’s organizational levels and business activities.
Risk management has contributed in the planning, decision-making and improvement of good corporate governance within the Company. The risk management system implemented by the Company could measure and minimize the effects of various risks. This is evident in the effectivity of the risk mitigation plans that have been set in terms of quality, quantity and settlement period. Through this risk management system, the Company can reach significant income growth for the achievement of its targets.
| Type of Risk | Risk Description | Prevention | |
|---|---|---|---|
| Competition/Business Continuity Risk | Many competitors in the industry. Every strategic policy/action from competitorsmight effect the performance of the company | Company will continue to penetrate new market, introduce new products, and improve productivity hence increase efficiency to win the competition. | |
| Market Risk | Some projects might be delayed or cancelled | Market diversification will be the strategy to cope with this risk. | |
| Volatility of Raw Materials | Theprimary Raw materials namely; copper and aluminium are globally trade commodities. The proce of copper and aluminium depend on the global demandand supply. | Company observes and hedges accordingly based on market price fluctuation, especiallyfor long term projects. | |
| Foreign Exchange Risk | Mostof raw materials are USD based, the weakening of Rupiahs will effect theperformance of company | Companywill minimized and hedged the exprosure to the forex risk. | |