SCG Enterprise Risk Management Framework has implemented the Enterprise Risk Management Framework in alignment with international standards. The framework consists of 4 aspects.
- Strategy Establishment
SCG has established explicit objectives and risk appetite in managing risks to ensure consistent risk management practice across the organization.
- SCG Risk Management Structure and Responsibilities
The organizational structure of SCG’s risk management is illustrated below.
- Risk Management Process
SCG risk management framework applies to three areas: strategic risk, investment risk, and operational risk. The risk management process comprises risks or opportunities identification, risk assessment, risk response, and risk reporting.
- Building a Corporate Risk Culture
SCG recognizes that risk culture is a critical component of risk management. SCG begins from tone at the top by having executive management to be a role model for a strong risk culture and to communicate its importance. Risk management is embedded in decision-making process, and related trainings and seminars are also provided to management and employees throughout the organization.
Below are the key challenges for SCG businesses.
- Safety and Health Risks
- Climate Change and Environmental Risks
- Compliance Risks from Changes in Laws & Regulations
- Reputation Risks from Eco-consciousness Trend
- Geopolitical Risks
- Fluctuation in Energy and Major Raw Material Prices Risk
- Human Resources Management and Capability Risks
- Foreign Exchange Rates Fluctuation Risks
- Risks from Global Economic Slowdown
- Details of scenarios, risk assessment, impact, and risk mitigation strategies are disclosed on 2019 Annual Report.
- Risks from Digital Technology Transformation
- Risks from Consumers’ Behavior Change due to Circular Economy Trend
- Risks from Changing Business Landscapes