The risk management policies and processes are set by the Board. These are regularly reviewed and updated as
necessary.
The Group has setup a risk management team to oversee and assess the Group’s risk management framework and
policies, to ensure that the Group maintains a sound system of risk management and internal controls to safeguard
shareholders’ interests and the Group’s assets.
The Group identifies, analyses and evaluates risks that affect the operations of Samudera’s business and realization
of projects. This includes considering factors that trigger and give rise to such risks as well as its potential impact to
the organization. Achieving these objectives will allow the Group to increase shareholder value by focusing on the
key risks, finding an appropriate balance between cost and risk control as well as a more effective capital allocation.
An overview of the key risks are identified in the following areas:
•
Strategic
•
Investment
•
Operation
•
Compliance
•
Financial
Strategic
1. A periodic strategy evaluation exercise is conducted with the view to build and enhance its long-term strategic
direction and plans. The plan will be aligned with the broader Vision, Mission and Values of the Samudera
Indonesia Group, the major shareholder of the Group. The main elements of the strategy will be to expand and
enhance our network and connectivity, and to provide high-quality transportation services and logistics to our
valued customers.
2. The Group is committed on providing the best quality service for its customers. Therefore, strong emphasis in
organisational structure is geared toward continuous improvement in customer satisfaction as well as customer
retention.
3. The Group adopts a portfolio approach in terms of its business lines. Within the shipping industry, it participates
in two different business segments: container shipping, and bulk and tanker, each having its own unique business
cycles, characteristics, risk profiles and profitability patterns.
Investment
1.
Written approval fromBoard is necessary prior to implementation of any new investment. The approval process
involves a rigorous review of various aspects, including but not limited to:
a)
competition and market
b)
demand – supply
c)
pre-operating project management risks, including risks of delay and cost overrun
d)
operational risks and expertise necessary
e)
valuation risks
f )
currency risks
g)
level of borrowing
h)
interest rate risk
i)
cash flow and returns
j)
country risk
k)
legal and regulatory issues
RISK MANAGEMENT
POLICIES AND PROCESSES
46
FOCUSED & RESILIENT
SAMUDERA SHIPPING LINE LTD
ANNUAL REPORT 2015
