Risk Management Policy

Good Corporate Governance

 

Sri Trang Agro-Industry Public Company Limited realizes the importance of good practices for sustainable achievement; in addition, we are able to cope with any changeable environments both internal and external that affect the accomplishment.

As business environment is complex and unpredictable, STA Group concerns Risk Management to be the tool for supporting strategy, manages and improves operation to enhance the potential, adds values, and supports achievement. Therefore, all employees in any levels should be aware of roles and responsibilities in risk management activities together as it is an important part of the organization.

STA Group implements the enterprise risk management for supporting management and value adding activity.

Risk is the uncertainty of as possibility of loss to company and causes STA not to be able to achieve the objectives.

Risk Management is the risk identification, assessment, control processes for reducing risk exposure in term of risk appetite to assure achievement of objectives and create opportunities for STA group.

  1. To adopt risk management for the company as a part of decision making 2 process, defining policy, developing plan and operation of STA.
  2. To develop solution to handle residual risks by considering reduce opportunity and/or impact of risks in order to achieve objective of corporate and function.
  3. For top managers and risk management committee to get the important risk information, trend of risks and overview in order to be able to effectively control risks of STA group.
  4. For all departments to identify, assess, and manage importance risks by being aware of the risk appetite level and be able to implement a realistic implementation.
  5. To transfer risk management knowledge to all employees who have the potential risk.

Risk appetite is a highest risk level that is acceptable in organization level. It is defined by top managers and controlled by risk management committee, and it is used in risk assessment and risk control. Risks are analyzed and assessed if they exceed the risk appetite. Thus, that risk owner will develop an action plan to handle them and report progress to risk management committee. The risk appetite is classified into different 5 main types:

  1. Financial risk appetite – to accept loss of money or decrease of income to a certain extent but not over significantly level that effect to the liquidity of STA.
  2. Goal risk appetite (any departments) – to accept under goals or KPI to a certain extent but not over significantly level that effect to the performance of STA.
  3. Operational risk appetite –to accept delay of work, drop of efficiency and any error to a certain extent that not significantly effects to critical work.
  4. Reputation risk appetite – to accept any negative information in locality for a short period but not the news that can significantly affects the reputation and 3 credibility.
  5. Safety risk appetite – to accept any few accidents but not any serious accidents that can significantly cause stop work for the long term or disability or depart.

STA group highly concerns the importance of risk management as we define risk management policy:

  1. Risk management is responsibility of all employee in any levels and be concerned with operating in own department.
  2. To promote risk management to be the management tool that any employee will understand and adopt the use of risk management to make the good corporate image, support good corporate governance, and create trust for the stakeholders.
  3. To support an information technology for risk management process in STA group. Every employee can access the risk information and top managers can use information to support management effectively.