Code of Ethics
Risk Management System
RISK MANAGEMENT SYSTEM
The Commitment of Risk Management
The Company consistently implements the risk management system in every operational and non-operational activities. The implementation of risk management shall be of concern to everyone in all organization levels in the Company.
The purpose of the implementation of the company’s risk management system is to evaluate the effectiveness of the internal environment, goal setting, identification of activities, risk assessment, risk management, control, information and communication activities, as well as supervising activities.
Risk Management System Implemented by the Company
The Company follows a comprehensive risk management system integrated with the strategic planning process and the Company’s business activities. The Company’s risk management shall be implemented in all management levels according to respective roles and functions.
- GCP (Group Corporate Policy), serves as the risk identification outlined in the form of policies and procedures.
- Internal Control serves as the internal control risk management.
- Internal Audit evaluates the risk management system, internal control and management information systems.
- IT Audit ensures control over the system used by the Company.
- CCSA (Compliance and Control Self Assessment) evaluates the risk management system, internal control and devices used in management information systems.
- MARS (Management Awareness Reporting System) serves as the risk management to identify, report and resolve problems faced by the Company and business units.
Main Risks Faced by the Company
Strategies in the risk management are implemented by sharing, avoiding and reducing risks through internal control system, or by retaining the existing risks. The main risks faced by the Company are generally divided into two categories:
- Risks due to compliance with regulations issued by the Company or other authorities.
- Risks due to changes in customer/viewer orientations.
- Risks due to the development of technology.
- Risks due to new competitors.
- Risks due to customer complaints/dissatisfaction.
- Risks due to processing errors.
- Risks due to poor asset management.
- Risks due to system error or misuse.
- Risks due to production failures.
- Risks due to failure or poor distribution of production to consumers.
The Company’s Implementation of Risk Mitigation
In 2022, the risk management system was effectively implemented through the following risk mitigations:
- Complied with changes in the goverment’s existing regulations or with new rules and regulations both in media industry and taxation.
- Monitored market trends by evaluating programs based on Nielsen’s TV rating research.
- Achieved efficiency by improving the process, as well as supported the implementation and business transformation projects by reducing risks to ensure the governance process and reduction of errors in manual data.
- Maintained the quality and sustainability of the Company’s daily operations through:
- Developing centralized policies to maintain procedures’ consistency and uniformity in every business process for all business units of the Company.
- Implementing the decision-making process based on matrix approval, approved by the Company’s management.
- Coordinating among business units in developing and managing HR.
- Risk-based audit process.
- Improvement of monitoring business unit related with compliance in operational activities.
- Developing policy management systems and procedures via Intranet and Web networks.
- Achieved efficiency by improving the processes, and supported the implementation and business transformation projects through:
- Improving working process and controlling process done by centralized system.
- Eliminating manual work implementation and improving automation to speed up processes through an integrated system.
- Preparing for accurate development plans and providing recommendations for repetitive business issues.
- Improving efficiency and working quality by integrating similar labor among different units.
Risk Management System Effectiveness Overview
The risk management implementation in the Company is regularly evaluated, as an inseparable part of the internal control system evaluation. This activity is carried out to establish and improve the effectiveness of risk management system implementation. The recommendations result of the evaluation study will subsequently be delivered to every unit for follow up, with follow up supervision by the Internal Audit Unit.