Sustainability Report 2017

Sustainabiltity Report 2017 22 Enterprise Risk Management Framework The SET’s risk management is in line with the international standard of COSO Enterprise Risk Management Framework through the systematic risk assessment, including identification and analysis of Key Risk Indicators (KRIs), in line with the corporate strategies and the changing landscape in economic, social, and environmental aspects. In 2017, SET considered significant risk factors as follows: Strategic Risks SET analyzed and assessed risks which may affect the corporate strategies and achievements, while creating business opportunities from technology advancement such as FundConnext, the mutual fund trading system; FinNet, the payment system of capital market; and the LIVE platform for startups. Financial Risks Thailand Clearing House (TCH) assessed the financial status of member companies and their liquidity risks to ensure their ability, as a central counterparty, to repay debts and manage other obligations upon members’ defaults of securities settlement. Pending settlement would be implemented upon defaulted settlement of securities to prevent debt balance in line with international standards. Operational Risks • SET assessed operational risks and relevant cyber security risk management, using effective and updated software, including Antivirus and Anti Malware, Firewall and DDoS Protection Service, to be in line with the ISO 27001 standard. SET also prepared its computer system to be resilient under unexpected circumstances which may affect the continuity of business operations. • SET took corruption riskmanagement seriously as corruption risks were among SET’s key risks. All departments must annually assess corruption risks and have proper management measures in place. SET also imposed measures, including No Gift Policy, and procurement efficiency improvement to reduce corruption risks. • SET assessed and identified risks related to occupational safety of the staff and contractors working in the SET building. The Occupational Safety, Health, and Workplace Environment Committee was established to develop and implement the SET’s safety culture program. Risk Management The Board of Governors has appointed the Risk Management Committee (RMC) to consider and screen risk factors which may post impact on the organization and the capital market. The Risk Management Department is responsible for promoting organization-wide risk management culture. Business Continuity Management SET has developed business continuity management measures, including Crisis Management Plan, Business Continuity Plan, and IT Disaster Recovery Plan. SET, in collaboration with related parties in the capital market, annually reviews and tests the measures, particularly on the preparation of personnel, computer systems and operation sites. Emerging Risks SET has analyzed and assessed risks from the ever- changing digital technology, including Blockchain and Financial Technology (FinTech), which could affect the financial industry, capital market and investment behaviors, to cope with technological advancements and increase the competitiveness of the Thai capital market. SET also promoted innovation knowledge and skills among staff and practitioners in the capital market, while providing new business opportunities via the development of the LIVE platform to promote the growth of startups. (102-30) (102-11) (102-10)