Objective

As CLI expands its business territory across the country, it faces a swelled number of known and unknown risks in different forms and variety. To ensure its stability and sustain its corporate value, the company continually assesses these various risks to prioritize and appropriately manage the corresponding mitigation measures.

The Board’s commitment to risk management is strongly demonstrated by the Risk Oversight Committee’s (ROC) close monitoring of the company’s risks and the implementation of the corresponding mitigation strategies. The Committee oversees the enterprise risk management framework that employs a comprehensive and integrated approach to risk management process of identifying, assessing, monitoring, and managing risks in business activities. CLI’s risk management structure is built around three main components: governance, people, and processes.

Enterprise Risk Management (ERM) is headed by the Chief Risk Officer (CRO), who is responsible for analyzing and mitigating risks that could impede the achievement of the organization’s goals. The CRO leads the formulation of risk management policies, methodologies, and metrics in alignment with the overall business strategy. In a dynamic business environment, the CRO proactively manages the risks to address the impact brought by the change in the organization’s operating requirements. Alongside risk strategies implementation, the CRO ensures that the risk-aware culture is maintained by facilitating across-the-board learning programs, benchmarking and promoting best practices.

At the management level, a Risk Steering Committee was established to facilitate an open and transparent interaction and communication among the heads of different departments and strategic business units in defining aspects related to the identification, analysis, evaluation, and treatment of strategic, operational, and project risks the business is exposed to. The department heads are responsible for managing the operational risks, ensuring that mitigation strategies are implemented and internal controls are effective. The committee meets every quarter to assess the effectiveness of the risk mitigation strategies for identified risks and potential shifts in the operating environment that give rise to new risks.

The Risk Oversight Committee (ROC) meets quarterly where the CRO presents the status of risk management, risk mitigation plans, emerging risks, and other risk related topics that can potentially affect the business operations.