1. Goal of Risk Management

Risk Management is an integrated part of Republic Glass Holdings Corporation’s (RGHC) management. The Company aims to support the achievement of its objectives of continuing operations and growth by putting the following principles into practice:

  1. the prevention, detection and investigation of fraud;
  2. ensure availability of all relevant information about risks, including opportunities for benefits and threats to success;
  3. ensure systematic means to assess, monitor and control risk exposure;
  4. the training of all employees in ethics, privacy and fraud awareness activities;
  5. the training of all employees in risk and fraud control activities;
  6. the discipline of offenders, including those involving routine or minor instances of fraud when appropriate; 
  7. the recovery of the proceeds of fraudulent activity;

2. Risk Management Organization

The Board of Directors of the Company approves the risk management principles. The Board of Directors, supported by the Audit Committee, has an oversight role over the Company’s risk management activities. It also ensures that the planning, information, and control systems for risk management are in place and are sufficient and in compliance with business management goals. 

The Audit Committee covers financial reporting risk. The Audit Committee supported by the Compliance Officer, reviews Risk management and its compliance with Corporate Governance. The Chief Executive Officer, also supported by the Compliance Officer, also provides oversight on non-financial risks, such as organization risks, personnel related risks and business risk. The Chief Executive Officer is overall risk executive in overseeing the risk management activities of the Company.

3. Risk Management Process 

Risk Management controls the risk exposure by applying systematic approach in identifying risk, assessing risk, risk treatment, reporting and monitoring. The Risk Executive will encourage the use of a variety of techniques to assess various risk factors for fraud.

 Identification of risk areas include:

  1. Ensuring achievement of established goals and objectives;
  2. Safeguarding the efficient use of Company’s assets;
  3. Maintaining a safe work environment for the Company’s personnel and management of human resources;
  4. Compliance with internal policies and procedures;
  5. Compliance with laws and regulations.

Risk Assessment process comprises annual review, redevelopment and re-assessment of the risks to the company.  Risks identified by the operational units are reported to the Board through the Audit Committee, Chief Executive Officer, and Compliance Officer. Results of the annual review are reviewed by the Board.