Risk Management

Business Case, Business Impact: Risk/ Cost / Revenue

Why business must focus on Risk Management

Comprehensive risk management enables GC to achieve established corporate goals and objectives. It also supports the creation of values for stakeholders in the long run.

Protect Image and Reputation	Proactive risk management serves as a prevention and response to unexpected situations that may affect GC’s image and reputation.
Serve as a Basis for Decision-making	Risk management can contribute to accurate decision-making for planning and determining future business directions.
Reduce Business Costs	Identifying key financial risks, including planning and defining strategies to prepare for risk management, can cut down operating costs.
Ensure Business Continuity	Risk management can comprehensively reduce risks, both in internal processes and in collaborations with suppliers, allowing business to run smoothly according to established plans and reducing the risk of profit loss.
Enhance the Organization	Risk management can lower the likelihood and impact of risk factors in a comprehensive and effective manner, enabling GC to grow and become a sustainable leader in the industry.

Management Approach ^{GRI 3-3 (2021)}

Nowadays, business operations are significantly more complex and dynamic than in the past. This is primarily due to the global economic slowdown, along with uncertainties and risks stemming from geopolitics, which impact economic stability. In addition, changes in government policies and consumer demands, as well as advancements in generative artificial intelligence (AI) and digital technologies, are creating both new opportunities and risks that may influence future business directions. As a result, GC is adapting and implementing strategies to effectively respond to these changes.

GC, therefore, emphasizes on a systematic risk management for the entire organization while continuously improving the agility of the business. GC also continues to provide many training programs regarding risk management to raise the awareness and improve personal development for the executives and all employees. These are to assure that the company will be able to handle uncertainties effectively and achieve the operational strategy.

Commitment

GC strives to manage risks systematically throughout the organization by implementing international standards, covering assessment, management and monitoring of risks. GC also places emphasis on the company’s preparedness for emerging risks. In addition, the risk management framework and operational plans have been improved in line with key corporate strategies and goals under an acceptable risk appetite. This is to ensure that the organization can cope with challenges and accomplish established goals.

Risk Management and Internal Process ^{GRI 2-25}

GC has developed an Enterprise Risk Management according to the international standard of the Committee of Sponsoring Organizations of the Treadway Commission (COSO), the International Organization for Standardization's ISO 31000, as well as, the corporate governance principles for businesses registered in 2017 (CG Code 2017) and anti-corruption guidelines.

GC has set up a risk management framework and guidelines in order to systematically, efficiently, and effectively manage risks throughout the organization. Additionally, GC has also established a risk management monitoring and performance evaluation system to detect any potential emerging risks, that may arise.

Nevertheless, GC has integrated the risk management in the organization under 3 aspects of Governance, Risk Management and Internal Control and Compliance under one system called GRC. This allows GC to reduce the risks in more comprehensive manner. Furthermore, GC has also developed risk taxonomy to classify risks and integrated company-wide risk management at both the enterprise and operation levels, allowing GC to achieve any goals and targets more efficiently.