STRUCTURE AND MECHANISM OF CORPORATE GOVERNANCE

RISK MANAGEMENT

Risk management is one of the important elements in running the company’s business because the growing world of the company and the increasing complexity of company activities have resulted in an increase in the level of risk exposure faced by the company. The main objective of implementing risk management is to protect and create corporate value. The company manages risk bybalancingitsbusinessstrategywithriskmanagementsothat the company can obtain optimal results from its operations.

PT Pelabuhan Indonesia (Persero) applies risk management that refers to ISO 31000:2018. Every company certainly has to deal with risks that can affect the achievement of targets that have been set. The Company’s targets cover various aspects, values from strategic, operational, financial aspects, corporate image formation,legalandcompliance,environmentalandworksafety aspects.

RISK MANAGEMENT FRAMEWORK

Pelindo has adopted the risk management architecture standard based on ISO 31000:2018 Risk Management Guidelines, which consists of 3 (three) parts, namely Principles, Framework and Risk Management Process.