The coal industry in Indonesia is currently one of the industries that is classified as quite high risk in operational, competition, market, and regulation. As these risk factors are always beyond the Company’s control, therefore the Company pays great attention to and continues to monitor the encountered risks it faces so as to be able to anticipate such risks as early as possible. The Company as one of the business player in this industry considers the importance of implementing a comprehensive and integrated risk management system to support the Company in achieving its objectives.
Risk Management aims to manage every risk by identifying, analyzing and mitigating risks that may arise from the Company’s operations. In addition, the Company also strives to implement risk management in the Subsidiaries that includes identification assessment management and monitoring of risks in a coordinated and integrated manner.
The Company carries out several Enterprise Risk Management initiatives, including:
1. Updating and monitoring the Corporate Strategic Risk
2. Developing and testing a business continuity plan
3. Providing advisory in the management of Company’s risk
4. Providing advisory in the transaction monitoring aspect
The effectiveness of the Company’s risk management system is evaluated by the Internal Audit team. The team conducts periodic assessment of the performance and effectiveness of risk management implementation in the Company and its Subsidiaries to ensure that the Company is always aware of potential business risks. The risk assessment is adjusted to the level of risk and level of control to be then used as a follow-up reference for the improvement of internal control and risk management.