The company always applies the principles of sustainability and risk management in every business process. Every activity and decision-making always has inherent and inseparable risks that can affect the company's stability. The company requires a risk management system capable of managing all forms of uncertainty so that the company can continue to grow, develop, and provide value to all stakeholders, not only now but also for future generations.
In principle, risk management aims to protect and create value for the company, where the risk management process is aimed at analyzing and forming a plan to avoid unforeseen situations. The company needs to have accurate and measurable steps so that all forms of risk that can have a negative impact on the company and potential opportunities can be well managed.
As a form of the company's commitment, as a Subsidiary of PT Wijaya Karya (Persero) Tbk in implementing Good Corporate Governance effectively and integrally (Enterprise Risk Management) in accordance with the Regulation of the Minister of State-Owned Enterprises Number: PER-2/MBU/03/2023 dated March 3, 2023, about Guidelines for Governance and Significant Corporate Activities of State-Owned Enterprises. The company implements a risk management system and forms a work unit that is directly responsible to the Director of Finance, Human Capital, and Risk Management, namely the Control and Risk Management Division. The implementation of Risk Management is also carried out in all work units and WIKA Beton personnel.
The company is always committed to maintaining and continuously fulfilling the completeness of the Governance, Risk, and Compliance (GRC) Infrastructure System so that the implementation of Good Corporate Governance, risk management, and compliance management can continue to support sustainable business growth. The company hopes to further increase the trust of Stakeholders and improve sustainable performance in the future.
The risk management framework and system implemented by the Company adhere to ISO 31000:2018. The risk management process is conducted in a structured and directed manner to manage effective management of potential opportunities and adverse impacts. The principles of risk management serve as the foundation for managing risks and must be considered when establishing the risk management framework and processes.
The objective of the risk management framework is to help the organization integrate risk management into significant activities and functions. The effectiveness of risk management depends on its integration into the organization's governance, including decision-making. This requires support from the Company. The risk management process is an integral part of management and decision-making and is integrated into the organization's structure, operations, and processes. The risk management process involves the systematic application of policies, procedures, and practices to the activities of communication and consultation, context setting, risk assessment, treatment, monitoring, review, recording, and reporting.
The goal of monitoring and reviewing is to ensure and improve the quality and effectiveness of the design, implementation, and outcomes of the process. Monitoring and reviewing all risk management activities must be planned and continuous, carried out at all stages of the process, and responsibilities for each activity must be assigned.