STRUCTURE AND MECHANISM OF CORPORATE GOVERNANCE

Company. Therefore, risk assessment is the basis for determining how risk will be managed. Before conducting a risk assessment, the Company’s objectives must first be determined at the activity level, which is divided into operational, reporting, and compliance objectives. The Company's goal setting contains statements and directions that are specific, measurable, achievable, realistic and time-bound, and communicated to all employees.

The Company's risk assessment is carried out by:

Principle 6: Setting Relevant Goals

The Company sets clear objectives for the implementation of risk identification and assessment related to the objectives.

Board of Directors and Board of Commissioners determine the Company's vision, mission, goals, and objectives as outlined in the strategic plan (Company Long-Term Plan), annual performance plan (Corporate Budget Work Plan), as well as the Company's Articles of Association. The Company's objectives that have been clearly defined are communicated to all employees. Management establishes an operational strategy that is consistent with the Company's strategic plan.

Goal Setting at Activity Level

Setting goals at the activity level is based on the objectives and strategic plans of the Company. Goals at the activity level complement each other, support each other, and do not conflict with one another. Objectives at the activity level are relevant to all of the Company's main activities and have elements of measurement criteria supported by sufficient Company resources. The head of work unit identifies goals at the activity level that support the overall success of the Company. All heads of work units are involved in the process of setting goals at the activity level and are committed to achieving them.

The following are attributes related to the objectives of internal control:

1. Attributes Related to Operational Objectives
1. Considering risk tolerance

Management considers the level of risk that is acceptable in achieving operational objectives.

2. Describe management options

Operational objectives describe management's choices regarding the structure, industry considerations, and performance of the Company.

3. Include operational and financial performance targets The Company describes the level of operational and financial performance expected in the operational objectives.
4. Establish a basis for allocating resources Management uses operational objectives as the basis for allocating resources required to achieve the expected operational and financial performance.