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Risk Management
Committee Report
84
Annual Report
2015
In 2015, The Stock Exchange of Thailand (SET)’s Board of
Governors (BoG) appointed the Risk Management Committee
consisting of seven committee members: four members were
board members, and three members were non-executive
experts in the fields of finance, accounting or risk management,
as follows:
1. Suthep
Peetakanont (Chairperson)
2. Pichet
Sithi-Amnuai
3. Suthichai
Chitvanich
4. Kesara
Manchusree
5. Ruchukorn
Siriyodhin (expert)
6. Professor Dr. Anya Khanthavit (expert)
7. Somkiat
Sirichatchai (expert)
The Board of Governors (BoG) appointed Voravan Tarapoom
to the committee, effective December 16, 2015, to succeed
Suthichai Chitvanich whose term expired.
During 2015, the committee has completely performed
its duties under the scope of responsibilities specified in the
Charter. The committee held 5 meetings. The attendance record
of the committee member is shown in Corporate Governance
Report. A summary of key activities in 2015 is as follows:
•
Risk Management at the corporate level and process level:
The committee reviewed and provided recommendations
on Corporate Risk Appetite/Risk Tolerance, corporate risk
profile, risk appetite and key risk indicator (KRI) of key
risks, report of risk and control self-assessment 2015,
and risk management policy, as well as risk management
framework to ensure that risk management operation was
in line with its policy and international standard for utmost
benefit to the organization.
•
Strategic risk management:
The committee reviewed and
provided recommendations on SET’s 3-year strategic
direction (2016 – 2019), strategic plans 2015 and related
key performance indicators (KPIs) to strengthen integrated
risk management and strategic planning.
•
Risk management of new business and strategic projects:
The committee placed emphasis on providing agricultural
derivatives products by reviewing and advising on
the risk management and membership qualifications.
The committee also considered the risk management
of new equity clearing and depository systems project
launched in August 2015.
•
Risk management of SET’s subsidiaries
The committee
reviewed the revision of methodology to calculate the risk
value in the clearing and settlement system to enhance
risk management to be in line with international standards
such as the Principles for Financial Market Infrastructures
(PFMI) of the International Organization of Securities
Commission (IOSCO), and European Markets Infrastructure
Regulations (EMIR) of the European Securities and
Markets Authority (ESMA). In this regard, the business
circumstance and industry cost issues were taken into
their consideration. The committee also recommended the
appointment of risk management specialist for Thailand
Clearing House Co., Ltd. (TCH) for the year 2016 so that TCH
could obtain advices and recommendations on technical
issues, rules and regulations, as well as exchanging
experiences and views regarding risk management of
other organizations.