Emerging Risk Monitoring
Emerging Risk Monitoring
GC constantly evaluates risks that may derive from external factors by following the Early Warning System that utilizes the PESTEL Analysis Framework (Political, Economic, Social, Technological, Environmental and Legal)
which oftens capturees the emerging risks that might have an affect to the company in short-term, middle-term and long-term. Therefore, the result from the Early Warning Systems would use as a proactive action to mitigate foreseable risks and to create growth opportunieis to the business operations.
Emerging Risk with Risk Descriptions, Potential Impacts & Mitigations
GC is well aware of the impact of the emerging risks that may affect during the next 3-5 year period to ensure proactive protection from future risk trends.
In this regard, GC has analyzed the potential risk factors and impacts that can affect the company's business operations. GC has developed the effective risk mitigation measure and continually monitored the emerging risks in medium and long term. These allow GC to achieve the goals according to the strategic direction.
Change of Business Structure due to Up-Coming Accelerated Global Trend
As a result of COVID-19 and rapid growth in technology has prompted an even faster pace of disruption to the Chemical Sector and the overall markets. As a result, the accelerated 3-5 year risks identified according to 3 global trends is comprised of
- Sustainability Trends,
- Demographics and Geopolitical Tensions Trends and
- Accelerated Digital Transformtion.
Business Impacts
- On of the sustainability trends, such that Circular Economy might affect GC in terms of the change of plastic and chemical production and GC's reputation as a leading chemcial company in the world. However, if GC manages properly, this sustainabiltiy trends might be benefitial for the organization, as it can serve the expecation of the societies and customers.
- Demographics and international political conflicts might result in trade barriers and country-specific standards, which may cause the company to lose competitiveness and may also lead to higher operating costs.
- The accerelation of digital development would influence GC to invest in the technology in business operations as well as to develop new employees training in roder to prepare for a rapid change of the technology.
Mitigation Measures
- Focus on creating Flexibility and Optionality to create reseliency in marketing and products, which helps maintain and creates better returns to the company
- Monitoring the product standards, the trade barriers and treaties as well as preapring for any regulations update from government and related agency
- Upskill and reskill employees through digital academy, bring new ways of working and change management for creating digital innovation culture in order to create Organization Transformation
Technology Disruption
As a result of the new normal from COVID-19 and rapid development of digital technology, have fueld a strong growth of Emerging Technology, which can effecitvely improve the compeititveness of one companny and also new opportunity to the organization.
Business Impacts
- The dependency of fossil fuel will greatly decrease due to the development of battery technology in Electric Vehicle (EV).
- Artificial Intelligence (AI) can affect the competitveness of the organization in a long-term due to delay of company's technology adaptation.
Mitigation Measures
- Utilize Corporate Venture Capital (CVC) as a method to seek for new knowledge and new technology that can be beneficial to the organization.
- Improve the product efficiency and product value through corporate partnership, who possesses advance production technology.
- Seek for new opportunity in High Value Business (HVB) and focus on the advance innovation & technology that has high potential growth and responds to customer's needs.
Cyber Threats & Data Security Risk
Increased dependency on technology as well as transformation towards data and digital driven organization may lead to risks of cyber threats to both the production process and all operating platforms that rely on internet connections. Production system may be disrupted, which will affect business continuity, credibility and reputation of the company.
Business Impacts
- The inability to manage data privacy and to manage cyber threats can deter the business operation, creditability, images and reputations of the organization.
- Cyber Threats will cause leakage of confidential information of business operation, suppliers and customers
Mitigation Measures
- Develop an IT infrastructure, especially for security system
- Carry out cyber security drills and disaster recovery tests regularly to be able to respond to incidents in timely manner and lessen damages to information systems
- Implement an information security management system according to Thailand's Personal Data Protection Act (PDPA), as well as provide training to employees on the data privacy requirement