Enterprise Risk Management
SM Prime follows an 8-step Risk Management Approach, which starts from the identification and prioritization of risks, to the assessment of risk interrelationship and analysis of the sources of risks, then to the development of risk management strategies and action plans, and ultimately, to the monitoring and continuous improvement of the risk management process.
The Executive Committee provides oversight on the assessment of the impact of risks on the strategic and long-term goals of the Company. The business unit heads are responsible for managing operational risks by implementing internal controls within their respective units. On a quarterly basis, the Audit and Risk Management Committee is updated on status of risk management and improvement plans of the Company.
Details of key risks and risk management programs are discussed in the Annual Corporate Governance Report submitted to SEC.
Risks are subject to regular review and assessment. The Company’s risk management system, as well as governance and internal control systems, are subject to independent evaluation of the Internal Audit Department.