Globe institutionalized a process to closely monitor the RM plans and actions being taken to address critical risks, including the establishment of key risk indicators and key performance indicators, to ensure these are appropriately managed. This process includes a review made by the Management and Business teams, and Group Heads. The Management monitors enterprise level risks such as strategic risks, major program risks, and regulatory risks while the business team and group heads monitor the operational, legal, and project risks.
Our key RM activities include:
- Identifying top enterprise risks—including (but not limited to) those that relate to economic, environmental, social, and governance—that can impact the achievement of Globe's key objectives;
- Prioritizing risks based on the degree of impact to business objectives and the likelihood of occurrence based on predefined risk categories and parameters;
- Scenario and mitigation planning;
- Business continuity planning;
- Crisis planning and management;
- Program risk management;
- Monitoring and reporting on the status of risks and corresponding RM plans;
- Establishing a risk register with clearly defined, prioritized, and residual risks;
- Identifying, assessing, and managing operational risks by line management;
- Establishing operational risk thresholds for monitoring; and
- As necessary, contract independent reviews by third party consultants to assess/identify risk exposures and verify the soundness of controls.
An enterprise-wide assessment of risks is performed by the Management and business teams as part of our annual planning and budgeting process, with the results of which reported to and reviewed by the Board. This assessment focuses on identifying the key risks that threaten the achievement of our business objectives at corporate and business unit level, as well as the assignment of Risk Owner/s and the development of plans in managing such risks. The established strategies and plans to address the risks are continuously developed, updated, improved, and reviewed for effectiveness. On a regular basis, the Management discusses the current risk levels and status of implementation of mitigation plans.
We also established a coordinated end-to-end operational risk assessment program to identify, assess, treat, monitor, and report risks for effective and informed business decisions. The Management believes this program is an essential foundation for a strong RM process as it reinforces the lines of defense against key operational risks, while providing relevant insights to some of the top enterprise risks. The Management is apprised of the results of the assessments, particularly, the most significant risks for inputs on strategies and action plans and guidance on issues needing further review.
When necessary, we seek external technical support from third-party experts to aid our Management and Board in the performance of their duties and responsibilities including RM.
GLOBE PRINCIPAL RISKS
The achievement of our key business objectives can be affected by a wide array of risk factors, with some being universal and others unique to the telecommunications industry. The risks vary widely in occurrence and severity, some of which are beyond our control. There may also be risks that are either presently unknown or not currently assessed as significant, which may later prove to be material. At Globe, we aim to mitigate the exposures through appropriate RM strategies, strong internal controls and capabilities, close monitoring of risks, and mitigation plans.
Some of principal risk types that are identified as applicable to Globe are: political and socio-economic, financial markets, competition, regulatory, customer preference and technology shift, change program, organizational agility, human capital, reputational, compliance, and operational.
Find out the components of each risk type, the mitigation plans, and how we address these in our RM discussion on pages 146 to 153 of our 2016 Annual Sustainability Report.