• Risk management is imperative for current business operations, which are undergoing continuous change, to create confidence that ThaiBev can attain both short term and long term objectives and goals. Meanwhile, risk management can reduce losses and damages to an acceptable level, or even create business opportunities for ThaiBev to increase its competitiveness and growth.
• Therefore, ThaiBev has determined a systematic framework and approach for the management of any risk that might occur throughout the organization. Understanding has been created with management and every employee about opportunities and risks which may arise. There have also been plans formulated to mitigate risk with systems of monitoring, and evaluation of risk management to discover emerging risks in the future.
• Besides risks that may occur during normal operations, ThaiBev analyzes risks which might impact ThaiBev’s sustainability, and has found the following four significant changes in economic, social and environmental aspects:
  • Changes in demographic structure and the onset of an aging society.
  • Changes in climate.
  • Changes in technology causing changes in business formats.
  • Threats to the security and safety of information systems.

All of these are considered Emerging Risks which may hinder the business in reaching its goals and lead to losing business opportunities, as well as compromising the organization’s reputation, stability or sustainability.

Divided into the corporate level and the product group or business unit level:

At the corporate level:
There is a Sustainability and Risk Management Committee¹ (SRMC) which comprises ThaiBev directors and senior executives from each product group or business unit appointed by the Board of Directors. They are tasked with determining policies to manage sustainability and risk management, and strategically supervise the business in sustainable development effectively and efficiently. They are required to specify operational frameworks for ThaiBev’s risk management, including monitoring, screening, and giving ideas or suggestions in regards to the matters of concern.

At the product group or business unit level:
Senior executives of each product group or business unit are tasked with controlling and monitoring risk management at their product groups or business units and reporting to the SRMC.

There are also risk coordinators of each product group or business unit who assist in supervising and monitoring risk management operations in their product groups or business units, including coordinating with the Corporate Risk Management Working Team.

In addition to the management of risks which may arise in normal operations in each product group or business unit, ThaiBev also manages risk associated with strategic planning, investment, and setting business plans which have been considered by the relevant committees, such as the Raw Material Procurement Committee, the Management Committee, the Investment Committee, or the Executive Committee. Corporate risk must be reported to the Company’s Board of Directors and the Audit Committee, to be confident that every risk is managed according to the specified measures.
¹Note On November 23 2017, the Company’s Board of Directors Meeting No. 5/2017 approved the renaming of the “Risk Management Committee” to the “Sustainability and Risk Management Committee” and extending the scope of its responsibilities to cover the oversight of strategies to bring about efficient and effective sustainable development.

ThaiBev’s risk management process is Integrated Risk Management, divided into two different kinds: Top-down and Bottom-up Enterprise Risk Management. For instance, senior management has a role in identifying and evaluating ThaiBev’s strategic risk by analyzing the relevant internal and external factors, and considering a risk management plan alongside business plans, yearly operational plans and investment plans, with the continuous follow-up of risk management.

At the operational level, the head of a department and its staff must identify and evaluate operational risks, develop a risk management plan, implement it and report the results continuously at every level, from department and subsidiary company to product group or business unit, and at the corporate level.

Integrated Risk Management comprises the following procedures:

• 1. Define objectives of ThaiBev and the product groups or business units to be consistent.
• 2. Identify risks faced by ThaiBev or the business units, or those which are latent in operations, which may arise and have a negative impact on ThaiBev or the business achieving its goals.
• 3. Analyze and assess risks to find their cause; categorize and prioritize existing risks by evaluating the chances of a risk incident, and the impact or level of severity of the damage that might occur.
• 4. Plan risk management actions.
• 5. Implement the action plan.
• 6. Follow up, report and evaluate risk management by comparing Key Risk Indicators, specified as criteria to evaluate the results of operations for middle management upwards.

To engender knowledge and understanding and to instill risk management into the awareness of every employee, and develop it to be part of corporate culture in order to help ThaiBev to grow sustainably, the following measures have been taken:

• Held special trainings in risk management for the risk coordinators of each product group or business unit, as well as training activities for employees and orientation sessions for new employees. These are to understand ThaiBev’s risk factors, the processes of risk management, and the management tools used to address risk consistently in both general and particular cases. This is to prepare our employees for any incident which may occur in the course of operations, whether short term, medium term, or long term.
• Encouraged and supported employees to discuss or communicate matters of risk or safety at ThaiBev, including proposing opinions about managing risk in meetings and at training sessions.
• Established internal agencies such as the Office of Legal Affairs, the Compliance Unit of the Office of Corporate Secretariat, the Corporate Risk Management Working Team, and the Office of Internal Audit to examine and monitor operations, and give advice and suggestions on improving operations for product groups, business units and other departments across the organization.
• Initiated the Ways of Work Awards (WOW Awards) project for employees to present projects which may be a concept or method of operations which supports the ThaiBev’s sustainable development. Employees may enter the WOW Awards competition, which is judged by senior management. They choose work that is interesting and will benefit ThaiBev when implemented in real life contexts.

Besides this, employees can report potential risks to ThaiBev in writing to their line managers, or they can report to the Office of the President and CEO using the dedicated email account, after which the President and CEO will consider and take further actions deemed appropriate.