In 2021, the AEV Strategy, Reputation, and Risk Management Teams initially rolled out to their sub-units the results of the MSCI Climate Value at Risk (VaR) activity that started in 2020. This initiative aims to further understand the exposure of the Group in terms of Climate Transition Risk, specifically on the potential issuance of government policies/regulations to support the country’s commitment to Nationally Determined Contributions (NDCs). Apart from this, we implemented improvements in identifying, monitoring, consolidating, and reporting of emerging and Groupwide top risks.
For 2022, aside from our ERM operational activities, we will continue to improve our Risk Management Governance and Process by:
- Collaborating and integrating with subject matter experts (SMEs) such as the Strategy, Reputation, and Physical Security Teams
- Reviewing risk appetite (financial, reputation, investments, core business, and area) and risk tolerance
- Expanding articulation on supply chain risks in the current Supply Chain Risk Management Framework to include accountabilities from 3rd parties, not only limited to a cyber threat scenario but also geopolitical, climate change-related, and others.