Risk management system

The BoD is responsible for identifying and evaluating the Company’s exposure to risks and ensuring that potential risks are effectively mitigated. In this function, the Board is supported by the Corporate Risk Management Team, which oversees the design and implementation of the Company’s risk management systems, including the risk matrix, and ensures that they are regularly updated in line with the prevailing economic conditions and the growth of the business. The team comprises the Head of Internal Audit, the Financial Controller, Commercial Managers, Business System Managers and the Corporate Secretary, and is chaired by the Chief Financial Officer.

The key steps we take in managing the risks are as follows:

Effective risk management is fundamental to good business management, and Unilever Indonesia’s success as an organisation depends on our ability to identify and exploit the key risks and opportunities for the business. Unilever manages risks and opportunities in a considered, structured, controlled and effective way. Our risk management approach is embedded in the normal course of business.

Internal assurance and compliance monitoring are in place to review the strategy risk setting. Internal independent re-assurance (internal audit and corporate audit) and external re-assurance play a key role in ensuring that operational risks and business execution risks are properly addressed and managed.

In 2015, the Company’s business risk matrix was reviewed and discussed with the BoD. No significant changes were noted in the recent risk environment and the Directors concerned were assigned to manage the risks within their respective streams.