Risk Management
Quick
Link
Link
There are 9 aspects of risk management as follows
1. Product Program
The preparation of Product Program that defines the nature of the transaction, target groups, approval authority/limit, and risk, and risk mitigation to present to the Risk Management Committee and the Board of Directors to approve the enforcement.
2. Credit and Investment Sub-Committee (CISO)
Subcommittee has a duty to consider and approve, review and change the limit, as well as considering the criteria, conditions and methods involved in providing loans, investments and other transactions
3. Monitoring
Monitoring of various risks in accordance with the established framework for credit transactions, both in terms of money and securities including the investment of the company. The framework used for tracking will be as defined under the Product Program or regulations for each transaction.
4. Stress Test
Perform a test to estimate the impact by requiring changes in factors affecting credit portfolios and investments. For example, Testing the loan portfolio by adjusting the collateral price accordingly in order to know what price level results in the value of the collateral not worth the debt.
5. Simulation
Run simulations to support price changes (both collateral and investment) in order to know the outcome and the adequacy of the capital when there are more transactions or new transactions.
6. Alert/Warning
Monitoring of events or factors that may negatively impact the credit portfolio and investments as well as alerting the relevant departments to prepare for ways to deal with or prevent.
7. Reporting
Report on risk management according to which various aspects are monitored in accordance with the established framework for credit transactions, both in terms of money and securities Including the company's investment from tracking from transactions to executives on a daily basis.
8. Business Continuity Planning (BCP)
Business Continuity Management Working Group which is responsible for the preparation of the BCP so that the business can continue to operate, and also to test the communication of the company's employees as well as testing the company's main operations at the company's secondary workplace.
9. Risk Management Committee (RMC)
The Risk Management Committee consists of 3 of Directors and a President, a total of 4 persons. There will be a meeting to monitor and consider the risks of the company at least once per quarter and presenting the Product Program or operating regulations for credit and investment to RMC to consider and give opinions before submitting to the Board of Directors.
