Page 31 - sr_2013.PDF

ENTERPRISE RISK MANAGEMENT
IndoAgri has a comprehensive Enterprise Risk Management
(ERM) framework that coordinates the various “Lines of Defence”
across all its operating and functional units. It enables the Group
to maintain vigilance and oversight of the operations for timely
and accurate identification, assessment, mitigation, reporting
and monitoring of risks that can adversely impact IndoAgri’s
ability to achieve its business objectives.
The ERM framework comprises a set of systematic, integrated
and coordinated risk management strategies. The framework
is executed by the ERM unit, which reports to the Executive
Committee and an independent Audit Committee. Supported
by the Board and management of IndoAgri, the ERM unit
works across all divisions to ensure that risks are identified and
reported by all employees in a timely fashion via the appropriate
ERM channels and reporting processes. To reinforce our ERM
strategy, we have implemented a Code of Conduct along with
mechanisms for whistle blowing.
As there are various risk issues common to ERM and sustainability
management, the Head of ERM is directly involved in advising
the Audit and Risk Management Committee which reports to
the Board on the effectiveness of sustainability strategies and
risk compliance. The respective risk owners and business unit
managers conduct quarterly assessment of current and emerging
risks and prepare the risk assessment reports. All key materiality
issues are integrated in the ERM system.
The ERM unit analyses the risk assessment reports, reviews the
ERM strategy, and proposes an action plan to address specific
issues. The risk assessment reports are then shared with the
internal audit team, who validates the findings and actions taken.
The ERM unit also ensures that the Group complies with new
regulations and updates the Standard Operating Procedures
(SOP) accordingly.
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