Anunual Report 2015

Annual Report

2015

Risk management

The BoG emphasizes the importance of systematic risk

management. TheBoG is responsible for designating riskmanagement

policies and framework for the organization and appointing the Risk

Management Committee (RMC). The RMC, consisting of experts

in risk management, advises and makes recommendations to

management to ensure that SET’s risk management process is in

line with specified policies and international standards. The RMC

has to ensure complete coverage of all enterprise-wide significant

risks, consisting of three levels: 1.Strategic risk 2. Business risk and

3. Process risk, via risk assessment and self-control.

Operationally, the management is responsible for the risk

management and sets up the policy in identifying risks and assessing

the level of risk according to the defined criteria. TheRiskManagement

Department coordinates and supports management in the

implementation of risk management processes according to the

set policy. The risk management framework can be summarized

as follows:

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of its impact according to the established criteria, and set measures

to manage the risk at an acceptable level. Follow up on the

implementation of the riskmanagement plan by themanagement, as

project owner. Report the risk status which covers a continuous and

comprehensive review of the adequacy and effectiveness of key risk

management measures to ensure that in case the risk occurs, it will

be managed in a timely manner. Consider suitable risk management

measures required in preparation for the follow up of the securities

depository system and system for clearing and settlement.

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annually reviewing and practicing the implementation of the plan

with other agencies in the capital market to cope with any crisis.

SET recognizes the importance of the readiness of the staff and

the system both in the main building and the backup centers. SET

conducts functional tests on backup systems together with member

companies tomanage any disaster that may affect themain building.

This is to ensure continuity in securities trading.

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of Governors, the Risk Management Committee, and the Audit

Committee on a regular basis to keep them aware of the risks SET

is facing

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to realize the importance of risk management continuously, such

as a training course on integrated risk management and corporate

strategy, including the Fraud Risk Management in 2015

Based on all of the above activities, the BoG concluded that SET

has adequately conducted key corporate risk management activities.

(For details on the SET group’s risk management activities, please

see the Risk Management Policy section.)

Financial reports

The BoG is responsible for the financial reports of the SET

group, including the information disclosed in the annual report. The

preparation and disclosure process of financial report together with

some informationwhichmay have conflict of interest were established

to ensure that all information is accurately and adequately disclosed

in a timely manner in accordance with the generally accepted

accounting principles and standards, and truly reflects SET’s financial

status and operating results. The financial report was audited by an

independent external auditor and reviewed by the Audit Committee

prior to reporting to the BoG for approval. (The Audit Committee’s

opinion is stated in the Committee’s report).

Audit Fee for the year 2015

Audit Fee : In 2015, The Stock Exchange of Thailand and its

subsidiaries paid the audit fee of THB 2,337,000 to the audit

firm relating to an audit work.

Other Service Fee: The Stock Exchange of Thailand paid

the other service fee of THB 941,682 to the audit firm and

businesses relatedwith the audit firminother services, consisting

of the accounting consultation related to cost allocation review

and the cost for listed companies to improve the sustainability

report in line with the Global Reporting Initiative (GRI)

framework.