The management and staff of PT Kimia Farma Trading & Distribution (KFTD), a state-owned corporation and subsidiary of PT Kimia Farma Tbk., have dedicated themselves to developing a culture of risk management and implement a strong risk management system to lessen these risks and maintain the company’s goals.
KFTD has carefully considered every aspect of the framework of its risk management approach, following the guidelines provided in ISO 31000:2018:
- Performing ISO 31000:2018: By using internationally recognized standards, KFTD ensures a systematic approach to risk identification, assessment, and management.
- Integration into Corporate Governance Framework: The company’s corporate governance framework incorporates risk management in an efficient way that supports goal-setting, performance improvement, and decision-making while taking internal and external contexts into account.
- Structured Risk Management Programs: To reduce operational disruptions, KFTD implements structured and consistent risk management procedures to encourage a risk-aware culture across the entire business.
- Enhanced Human Resources Competence: All employees are allowed to develop a risk-aware mindset through regular training and professional certification programs, which implies the effective and efficient use of the risk management system.
- Continuous Evaluation and Improvement: To improve the effectiveness of the risk management system according to organizational governance and leadership principles, assessments of risk management practices and performance evaluations are carried out regularly.
General Policy
The main objective is to prioritize proactive actions while addressing risks that restrict the company’s goals by establishing and maintaining a risk management framework as an essential component of the corporate governance structure.
The company’s culture is linked with risk management, enabling effective control of favorable and unfavorable consequences in all actions and decisions.
This policy applies to all organizational levels and emphasizes that each unit and function manages its risks according to its objectives and needs.
Risk Management Principles:
- Creation and Protection of Value: Risk management contributes to achieving objectives, encouraging innovation, and enhancing performance while safeguarding value.
- Integration, Structured Approach, and Adaptability: Risk management is a vital aspect of organizational operations and decision-making processes, executed systematically and adapted to the organization’s internal and external context.
- Inclusivity and Continuous Improvement: Effective risk management and organizational resilience rely heavily on stakeholder involvement, consideration of human behavior and culture, and ongoing learning and development.
Risk Management Process:
- Context Establishment: Risks are identified, analyzed, and evaluated with input from stakeholders, considering both internal and external environments.
- Risk Assessment: Risks are assessed and appropriately managed or controlled by a systematic identification, analysis, and evaluation process.
- Monitoring, Review, and Communication: Transparency and accountability are reinforced by constant monitoring, review, and communication, which ensures that risk management operations stay in line with the company’s objectives and stakeholder expectations.
In conclusion, KFTD intends to effectively reduce risks, prevent corruption, and maintain its reputation as a symbol of KFTD’s good corporate governance through the implementation of structured risk management systems and the formation of a risk-aware culture.