The Aboitiz Group believes that a balance between business priorities and societal needs is needed for a sustainable future. The Risk Management Team supports the Group’s sustainability efforts by ensuring that we have an Enterprise Risk Management program that helps manage sustainability issues and create shared value for our communities. We are able to accomplish this by utilizing a robust risk management process, creating awareness, and building team member capabilities while maximizing available resources and technologies. The year 2020 underscored the importance of Risk Management in organizations. Our well-established Enterprise Risk Management program, with its Level 4 Risk Maturity rating, backed the Group’s resilience during the unprecedented pandemic. Risk Management will continue to take a full organizational approach, integrating with other business functions to drive a clearer understanding of our risks.
To adapt to the changing environment, we revisited the Financial and Supply Chain Risk Management Frameworks and the Group Risk Management Competencies in 2020. In light of the pandemic, we incorporated many revisions and the enhancements in our risk treatment plans. We also started to formalize the Pandemic Risk Management Framework as a guide for current and future occurrences. In collaboration with our external partners, we continued to build the risk management capability of the organization through e-learnings and other knowledge-sharing sessions on risk topics.
We will continue to collaborate with the Strategy and Reputation Teams for the sustainability and climate risk-related initiatives of the Group; the output will eventually be integrated into the Risk Management Framework. In 2021, apart from our ERM operational activities, we will start setting up our Risk Management and Risk Finance systems. We will also enhance our existing Risk Framework to better support the management of the Group’s top risks and material sustainability issues, including climate-related risks.