Page 160 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

2. Risk Management

The Company recognizes the importance of good organizational management to drive organizational growth
and expand its business steadily, create financial stability and appropriate returns for the shareholders as well as
ensure compliance with the principles of good corporate governance while upholding the system of checks and
balances amid the ever-changing competitive business environment currently facing the Company, caused by
either internal or external factors that may affect the ability to achieve its goals and core mission.

The Company’s Board of Directors and executives deem as appropriate to adopt a risk management system to
its operations to ensure good corporate governance and enhance ongoing confidence of shareholders and
all related parties in the operations, thereby achieving the objectives and create value for the Company.
The Company then established a risk management policy and framework as well as analyzed key risks as follows:

2.1 Risk Management Policy and Plan

The Company recognizes the importance and necessity to adopt a risk management system that meets
international standards to its management to ensure the achievement of objectives in an efficient and
effective manner and the compliance with relevant laws and standards. To ensure the overall risk is within
the acceptable level, the Company then established a risk management policy as follows:

(1) Determine that risk management is the responsibility of employees at all levels whereby they need to
be aware of the risks in the operations of their own units and organization while focusing on managing various
types of risks within the systematic internal control in an adequate and appropriate manner.

(2) Establish the risk management process that is in accordance with the good international standards in order
to effectively manage risks that may affect the Company’s operations efficiently, bring developments,
and carry out risk management tasks in the same direction throughout the organization by embedding the
risk management system as part of the decision-making, strategic planning, plans and operations of
the Company as well as focusing on achieving the specified objectives, goals, vision, mission and strategies
to establish operational excellence and enhance confidence of relevant parties.

(3) Set plans to prevent and mitigate the Company’s operational risks to avoid potential damages or losses
as well as monitor and assess the results of risk management regularly.

(4) Promote and develop a cutting-edge information technology system to be implemented in the Company’s risk
management process and support personnel at all levels to have access to the sources of risk management
information thoroughly as well as set a reporting system of risk management for acknowledgement of
the Risk Policy Committee in an efficient manner.

Furthermore, the Company has established the risk management framework by adopting COSO ERM 2017 as follow.

The Company has integrated strategic development, business objectives setting and performance evaluation into
the enterprise risk management under 5 interrelated principles which will enhance value creation for the Company.

1. Governance & Culture
The Company sets up the organizational structure and clearly determines the duties and responsibilities of
risk management as well as fosters a corporate culture that focuses on awareness of the risks that may affect
its business operations.

160 Annual Report 2021 (Form 56-1 One-Report)