The Mining industry is a high-risk industry which requires a comprehensive and integrated risk management as part of the GCG implementation for the achievement of the Company’s goals. To manage risks, the Company applies a risk management framework including:
- A systematic approach as well as identifying, analyzing, managing, monitoring, and reporting risks.
- Management and risk holders must ensure that the appropriate actions and risk treatment are carried out.
Risk management is integrated in every decision making and activities to ensure that every decision made has calculated and considered the risks based on the available information. Risk management ultimately aims to protect stakeholders.
The principles of risk management
- Structured and comprehensive
- Based on the best available information
- Considering cultural and human factors
- Continuous improvement
In the implementation of risk management, the Board of Commissioners and Board of Directors are responsible for an effective risk management within the Company. The Board of Directors are in charge of establishing policies, supervising & reviewing the implementation of risk management and the overall risk management in the Company.
ESG Risk Management (Environmental, Social and Governance)
Each type of risk is documented in the risk register and each risk holder can assign/appoint a person in charge to update and maintain the risk register. The risks faced by the Company are reviewed by the management every semester to identify emerging risks and other potential risks that may affect the operations of the business units.
The Company’s risk register includes environmental, social and governance (ESG) risks associated with mining operations, each of which has a risk mitigation plan. The effectiveness of risk management is evaluated by Internal Audit which conducts periodic assessments on the performance and effectiveness of risk management in the Company and its subsidiaries. In general, the implementation of risk management in 2020 has been running effectively where the Company and its Subsidiaries are able to manage and minimize the potential and impact of risks.
DEVELOPMENT OF ANTI-FRAUD PILLARS
The Company does not tolerate any form of fraud and corruption that is detrimental to the stakeholders. To prevent and overcome fraud, the Company established 4 (four) Pillars of Anti-Fraud consisting of Prevention, Detection, Re-wards and Sanctions, as well as Monitoring, Follow-Up, and Recovery.
Fraud prevention is the responsibility of every-one. In the code of ethics, it’s stated that every employee is required to act responsibly and pre-vent any harm to the Company. Any form of fraud is intolerable.
Included in Fraud are fraud, corruption, theft/embezzlement, violation/abuse of Company policies, destruction of assets, gratification, conflicts of interest, deceit, bribery, and other forms of actions that are detrimental to the Company.
Every person without exception who is aware of the code of ethics violation must report it to his direct supervisor or to the Ethics Committee or using the whistleblowing system. The Whistle-blowing System is a reporting system that enables anyone to report suspected violations committed by any individual within the Company.
The purpose of the Whistleblowing System is to increase compliance of each individual with the existing regulations and to encourage a high ethical culture in carrying out activities that related to the internal and external parties.
”Pencegahan Fraud merupakan tanggung jawab semua orang, dalam kode etik dinyatakan bahwa setiap karyawan wajib menjaga tindakannya dan mencegah timbulnya hal-hal yang merugikan Perseroan. Segala bentuk penipuan tidak dapat ditolerir.”