The Company implements risk management system in a comprehensive manner in order to detect, prevent, minimize, and mitigate the potential risks that can give significant impact on the Company’s business sustainability. To implement risk management system thoroughly, the Company conducts an indepth study on risks that are relevant to the Company’s business and develops risk awareness culture within all work units.
a. Interest Rate Risk
Risk that may occur from loan in foregin currency.
b. Credit Risk
Risk that comes from trade receivables and other receivables, and continuous collection is needed to minimize this risk.
c. Liquidity Risk
Risk thay may occur when cash flow position shows current assets is not enough to cover current liabilities.
d. Capital Risk
Risk that comes from the Company’s capital structure stability. The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for stockholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
e. Risk of Changes in Government Policy, Economic, Social and Political Situation
Risk that may occur from the government policies concerning economic and monetary, and social and political conditions. This risk may result in unfavorable purchasing power and may also reduce the role of the Company in its business.