The Group’s risk management philosophy describes its attitude to risk-taking. It is the driving force behind all the decisions made in the conduct of business activities and operations from a risk perspective. This is fittingly summarized in the following statement: “To enhance shareholders’ value by creating and maintaining a culture of intelligent risk-taking.”
This risk management philosophy is further cascaded into working statements via the following risk principles:
The decisions taken by the company and its subsidiaries would be based on a careful analysis of their operating environment as well as the implications of risks to the achievement of strategic goals.
The company and its subsidiaries would not take any action that would compromise the overall integrity of the brand.
GTCO and its subsidiaries would always comply with government regulations and embrace global best practices.
Risk management will form an integral part of the Group’s strategy-setting process.
The Group’s risk control process will not constitute an impediment to the achievement of strategic objectives. The Group will only assume risks that fall within its risk appetite with
commensurate returns.
The Group shall adhere to the risk management cycle of identifying, assessing, measuring,
controlling, and reporting risks.
The company and its subsidiaries shall continually review their activities to determine the
level of inherent risks and adopt the appropriate risk response at all times.
To continually sustain its strong risk culture, the Group adopted the COSO definition of
Enterprise Risk Management (ERM), which depicts ERM as a process driven by an entity’s Board
of Directors, Management, and other personnel. It is applied in setting strategies, facilitates the
identification of potential events that may affect the entities within the Group, manages risks
within the risk appetite set, and enables the achievement of the Group’s objectives.