Risk Management

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PPA Risk Management Framework

The effective risk management is pivotal to the success of any company focusing on investment and financial, i.e. achieving the right balance among the aspects of Return – Risk – Capital. This risk management objective can be achieved through the implementation of sound risk management framework, which comprise of:

Comprehensive risk management policies and procedures;
Appropriate organizational structure with clear definition of roles and responsibilities at various levels;
Adequate risk management processes (including risk management methodologies and risk mitigation approaches), risk monitoring and control processes;
Supporting infrastructure in terms of IT systems and resources.

PPA established a comprehensive risk management structure to measure, monitor, and manage the principal risks faced while conducting its day-to-day operations. These risks include credit risk, operational risk, market & liquidity risk.

We ensure that every operational activities in PPA embed risk management. Procedures are developed with clear definition of roles and responsibilities at various levels involved, with the four-eyes principle in place, evaluated and updated from time to time.

Risk Management Process

PPA strives to continuously adjust its Enterprise Risk Management (ERM) as part of the strategic plans to maintain its asset quality and operations as well as business pillars against risk exposures. In its implementation, our investment activities are safeguarded by multiple lines of defense. The first line of defense is the risks taking units ( Business Divisions / Directorates ). Supporting functions, including among others, Risk Management, Legal, Treasury Divisions are the second line of defense that will check, verify, and provide independent views to the management with regards to the proposal from risk taking units as well as monitor the investment portfolio together with the Finance and Business Operations Divisions. The Board of Directors is the third line of defense. The fourth and final line of defense is the Internal Audit Division, which will verify to ensure that all of the Company’s standardized procedures have been met.

Within the ERM framework, the Board of Directors is responsible for monitoring and managing the overall enterprise risk profiles, with the Risk Monitoring and GCG Committee of the Board of Commissioners acts as an oversight function.

Risk Management

Risk Management

PPA Risk Management Framework

Risk Management Process

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