effectiveness of mitigation actions taken by the risk owner (Risk Owner), then validated and re-verified by looking at operational, financial performance data, investment and other supporting data as well as using loss event data.
The evaluation results are submitted through an Official Memo to the relevant Work Units, or through direct discussions with the risk owners to provide input, suggestions, and feedback related to filling out the RCSA. The existing mitigation plan is monitored on a monthly basis and then reported quarterly. In addition, a quarterly risk profile monitoring report will be prepared and submitted to the Budget and Reporting Group to be included in the corporate quarterly management report.
The Company’s Board of Commissioners has a supporting organ, the Risk Management Monitoring Committee (KPMR) in charge of monitoring and evaluating the Risk Management work unit duties implementation, and providing recommendations to the Board of Commissioners. In the fourth quarter of 2021, this committee’s name was changed to the Good Corporate Governance and Risk Management Monitoring Committee (abbreviated as “GCG and RMM Committee”).
The Head Office Risk Management Group holds regular meetings with the GCG and RMM Committee to coordinate the planning and monitoring of the Company’s Risk Management implementation process. The Risk Management Group Head records the coordination results in meeting minutes for further action. Routine coordination carried out with the GCG and RMM Committees in 2021 included the Monthly Coordination and Quarterly Coordination. The coordination topics discussed include the Proposed RKAP Risk Profile, Results of Quarterly Risk Profile Monitoring, and other matters of concern to the Board of Directors and Commissioners. The Board of Commissioners is of the view that the risk management system has been running properly.
INTERNAL CONTROL SYSTEM
The Internal Control System is a very important aspect in GCG implementation, as it encourages the Company to be more transparent, accountable, responsible, independent, fair, and trusted. An effective and reliable Internal Control System provides confidence to stakeholders that all available resources are managed properly in order to achieve the Company’s goals. A reliable and effective Internal Control System in the Company is the responsibility of the Company’s Management who support the development of the Company’s Internal Control System.
The Company’s Internal Control System refers to the Committee of Sponsoring Organization of The Treadway Commission (COSO) as a comprehensive framework to measure the internal control effectiveness through 5 (five) components, namely:
