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Sustainability management
Risk Management
SET strategically manages risk in economic, social and environmental aspects, to ensure that
it will be able to continually run business in an efficient and sustainable manner in the
ever-changing capital market environment.
SET implements enterprise risk management (ERM)
consistent with international risk management practices.
All SET executives and staff are aware of their roles as
risk owners and manage risks facing the organization.
The BoG is responsible for designating risk management
policies and framework for the organization and appointing
a Risk Management Committee to advise and make
recommendations to management to ensure that SET’s
risk management process is in line with specified policies
and international standards.
Operationally, management is responsible for managing
risk, setting up the policies in identifying risks, and
assessing the level of risk according to defined criteria.
The Risk Management Department coordinates and
supports processes and toolkits for risk owners, such as
Key Risk Indicators (KRIs) and Risk and Control Self-
Assessment (RCSA), to ensure efficient risk management
enterprise-wide. The Risk Management Department
reports progress to management and the Risk Management
Committee monthly, and to the BoG quarterly.
SET determines the risk management framework
according to Committee of Sponsoring Organizations of
the Treadway Commission (COSO) and ISO 31000:2009
Risk Management-Principles and Guidelines. SET has
identified the following risks: strategic, operational,
financial, and regulatory compliance risk. In addition,
SET has determined a risk appetite and tolerance
framework in order to manage risk within an acceptance
zone and avoiding a rejection zone.
Risk management structure
Risk management process
Strategic Risk
In 2015, SET continued to improve its risk management
by reviewing its policies and operational framework, carrying
out its business in line with its corporate strategy on
business expansion and supply chain quality development
to ensure that SET’s risk management plan adequately
covered each risk identified.
SET has identified and assessed the probability that its risk
and set measures would be able to manage the risks at
an acceptable level. SET also follows up on risks of new
products and services. SET has thus completed a
continuous and comprehensive review of the adequacy
and effectiveness of key risk management measures in
order to ensure that the risks would have been managed
in a timely manner, if they had occurred.