The Importance of Effective Risk Management
Globe Telecom believes that effective Risk Management (RM) practices are crucial to sustaining its profitability and resiliency as a company. Hence, Globe ensures that RM remains a core capability and an integral part of how decisions are made in the organization to deliver value to shareholders.
The company’s thrust is to embed RM in the daily lives of employees, empowering them to make risk- informed choices when confronted by risks and opportunities.
RISK MANAGEMENT PILLARS
We live out our RM philosophy through these three key pillars.
Roles and Responsibilities
The Board of Directors (“Board”) has overall responsibility for risk management oversight in Globe. The Board oversees and actively discusses the status of key risks including management’s strategies and activities in managing risks such as: Political, Regulatory, IT, Cyber, Data Privacy, Business Disruption, Competition, Financial Markets, People, to name a few.
A Board Risk Oversight Committee (BROC) assists the Board in fulfilling its oversight responsibilities in relation to risk governance in Globe. This includes ensuring Management maintains an effective and efficient risk management system and enabling Management to make well-informed decisions based on prudent assessment of risks and opportunities.
The BROC is enabled by the Chief Risk Officer together with the Enterprise Risk Management Department, working in collaboration with the entire organization to ensure that the risk management agenda set by the BROC are effectively carried out.
Board Risk Oversight Committee (BROC)
The BROC assists the Board in fulfilling its oversight responsibilities in relation to risk governance in Globe. This will ensure that the Board and Top Management will be able to make well-informed decisions based on thorough assessment of risks and opportunities.
- Ensuring that there is an effective, efficient, and integrated risk management process in place.
- Cultivating a sound organizational structure with an effective Enterprise Risk Management framework working in place.
- Establishing clear definition of risk-taking authority, ownership, accountability, and proper segregation of duties.
- Fostering a risk-aware culture that is pervasive throughout Globe, and ensure transparency in reporting of key risks to relevant stakeholders.
Risk Management Approach
The ISO 31000 framework for RM is used as the basis for Globe Telecom’s RM process. The established framework also ensure that compliance processes and procedures are effectively guided by the RM policy.