Risk Management System
Risk Management System aims to raise awareness about the risks that may harm the Company’s businesses by using a systematic approach, so that the Company can avoid risks, negative impacts, and accommodate certain consequences, either partially or completely.
The Company’s Risk Management System process is conducted through risk identification, risk assessment, risk handling, monitoring results from risk handling, and evaluate the ongoing risk management system and handling.
The risks faced by the Company and risk handling, among others:
- Risks arising from the loss of the Company’s inventory or fixed assets due to things that are difficult to anticipate by the Company’s management, either by natural disasters or social unrest. Management has minimized this risk by insuring all of its inventory and fixed assets, including business interruption insurance, to insurance companies;
- The main operational risk is when the Company fails to produce products according to customer demand due to mechanical failure, employee strikes, a lack of raw materials and huge number of new workers.
The Company has already formulated a plan, set a schedule for regular equipment maintenance and stocked common and key spare parts for maintenance.
In anticipation of a strike, from time to time the Company conducts intensive communication with the labor union, either directly or through representatives of the union in SPSI.
To prevent a lack of raw materials, the Company has set a schedule for procurement of raw materials and minimum stock, as well as evaluating supplier performance every month.
The Company holds trainings on a regular basis to improve the competence of its employees.
The Company has always held a regular review on its Risk Management System so that risks can be handled effectively.