STRUCTURE AND MECHANISM OF CORPORATE GOVERNANCE

1. Socialization and Training on Audit Management System (AMS);
2. Auditor Competency Standardization (Certification); and
3. Review the IAU's SOP.

In addition, the Group Internal Audit Unit is reported to holding periodic meetings with Board of Directors, Board of Commissioners and/or Audit Committee.

FINDINGS AND FOLLOW-UP ON AUDIT RESULTS

As of the fourth quarter of 2021, the progress of follow-up to the recommendations of Internal Audit Unit Audit Report has been completed 96.25% of the 9,832 recommendations, with details as follows.

GROUP HEAD RISK MANAGEMENT

GROUP HEAD RISK MANAGEMENT DUTIES AND RESPONSIBILITIES

1. Prepare/formulate and propose a work program plan and budget related to operational and non-operational risk management within PT Pelabuhan Indonesia (Persero);
2. Make decisions related to the implementation of work program plans and budgets in operational and non-operational risk management based on the results of the Board of Director's decisions;
3. Conduct inspections and studies on:
1. Risk objective, risk appetite, risk tolerance, and risk taxonomy;
2. The mechanism for determining Key Risk Indicators (KRI) at corporate level and applying Early Warning System (EWS); c. Operational risk profile (corporate risk profile);
3. Non-operational risk profile (investment risk profile); e. Development of Risk Management tools consisting of Risk Management methods and applications;
4. Risk Monitoring Report; and
5. Proposal for risk management knowledge management in order to build a risk-aware environment in the Company include, among others, Risk Management awareness campaign, Risk Management knowledge portal, Risk Management competency and maintenance programs, and dissemination of Risk Management Policies and Processes.
4. Recommend suggestions related to:
1. Proposed strategies for operational and non-operational risk management;
2. Risk objective, risk appetite, risk tolerance, and risk taxonomy;