GCG Policies
Communication with Shareholders & Investors
Communication Policies with Shareholders or InvestorsGCG Policies
Risk Management
The Company's Risk Management System
Currently, the Company already has risk management governance infrastructure and other supporting elements that support the system. The Company has a Risk Management and Insurance Committee which assists the Company in monitoring, controlling and managing risks. The committee is responsible for identifying, evaluating, controlling and mitigating risks.
Risks and How to Manage Them
The Company’s Risk Management and Insurance Committee has grouped 4 (four) risk categories in the Company’s business, as follows:
1. Operational Risk
Operational Risk includes risk management:
- Labor availability.
- Availability of raw materials, energy and distribution.
- Quality of relations with residents around the factory. The Company has managed operational risks by taking actions, namely:
- Carry out efficient use of energy and raw materials in distribution arrangements.
- Improving the quality of harmonious relations with local residents through community development programs, especially the construction of a new factory in Cikampek and the relocation of employees from Jakarta to Cikampek.
- Conduct comparative studies with other companies regarding operational activities.
2. Financial Risk
The Company classifies financial risks as including, among other things, fluctuations in foreign currency exchange rates, changes in laws and regulations relating to finance, risk of violations in the field of taxation and commitment to implementing Capital Market regulations. To minimize this risk, the Company continues to increase export sales, so that the Company’s obligations in the form of foreign currency can be protected naturally (Natural Hedging). For working capital and investment purposes, the Company has also obtained credit facilities from the Bank which can be used by the Company when needed. The Company also always monitors and pays attention to legal developments related to finance in order to be able to overcome financial risks that may arise.
3. Legal Risk
To manage legal risks, the Company always ensures that all its business activities are in accordance with applicable regulations and laws both domestically and abroad. The Company continues to periodically evaluate the Company’s level of compliance in running its business. The Company has Human Resources who are experienced in the legal field and collaborate with several legal consultants. Every cooperation agreement between the Company and third parties and affiliates is always based on a strong agreement that provides balance for the Parties.
4. Hazard Risk
Hazard risks can occur at any time and the Company views that special attention is needed regarding this matter. These risks include occupational health and safety, natural and environmental disasters and disease outbreaks. To overcome this, in 2023 the Company has made several efforts, including:
- Carry out outreach and training regarding occupational health and safety intensively and continuously. The Company carries out regular evaluations and tests (safety riding) on heavy equipment operators and their vehicles. In addition, the Company checks the working conditions of employees at any time so that they can work safely.
- Carry out health education and regular health checks and hold blood donations.
- Establish a standard measurement system to analyze waste and disposal results.
- Evaluating the work of the Emergency Response Team (ERT) by conducting earthquake simulation training involving all employees.
5. Information Technology Risk
Information Technology Risk is a potential threat or problem that may arise in the use and management of information technology. These risks include information security risks, compliance risks, technology risks, project management risks and third party dependency risks. The Company has identified, evaluated and managed risks related to the use of its information technology. With these activities, it is hoped that it can reduce the possibility of data security incidents occurring and minimize the negative impacts that might arise if an incident occurs.
Risk Management Governance Evaluation
Risk Management and Insurance Committee together with the Board of Directors perform an evaluation to risk management governance based on results of the audit that has been done. Results of this evaluation are informed to related divisions for follow up and correction.