Report of the Risk Management Committee The Board of Directors is well aware of the significance of risk management. Under ever-changing circumstances, from both internal and external factors, that may affect the business, risk management is the critical key to every process of business operation. A clear risk management policy was therefore devised and implemented to ensure that risks are identified and managed to the Company’s acceptable levels. A Risk Management Committee was also set up to take charge of driving the implementation of risk management throughout the Company. In 2008, the Committee performed its duties and issued four reports on the progress of risk management, summarized below: 1.
Strategic Risk: Deliberated Corporate Risk Profile strategies in line with the Company’s mission. For example, in the formulation of strategies, the Committee considered risks that might obstruct achievements; identified, assessed, and prioritized risks; and formulated a risk management plan.
2. Operational, Regulation and Financial Risks: Deliberated the process and implementation plan of risk management to ensure that risk management and internal control were both efficient and sufficient for accepted risk levels and suitable for the evolving environment. The Committee also instituted risk management throughout the organization, both in shopping complexes and at the headquarters. 3. Every unit’s participation in risk management: Deliberated all significant aspects and business processes while giving practical suggestions to the formulation of work plans and following up implementation progress to minimize or avoid that particular risks 4. Issued four timely and appropriate risk management reports with conclusive updated risk management progress and submitted them to the Board after each Risk Management Committee meeting, and then made two briefings for the Board. In 2008, the Risk Management Committee ensured that risk management was both sufficient and suitable; risks were managed to acceptable levels. Moreover, risk management was continuously carried out and a risk management culture was nurtured. An useful advice was candidly given to all business units for the maximum and reasonable benefit of the Company, shareholders, and all stakeholders.
Mr. Naris Cheyklin Chairman of the Risk Management Committee