The Company realizes that in carrying out its business activities there will be various potential risks that can occur. Therefore, the Company’s Risk Management activities are focused on risk management on business activities, operations, and other external factors, as well as efforts to control all types of potential risks that may occur.

The Company consistently implements measurable, structured and comprehensive Risk Management in order to mitigate and manage these risks properly. Periodically, the Company and its Subsidiaries review the Risk Management system and policies by conducting the identification process, and reviewing the implementation of preventive measures, as well as how to handle these risks. The Company can ensure that there are no significant potential risks in the implementation of its business activities and operations.

The Company also invites its employees to contribute to risk management and provide important input in making decisions regarding Risk Management. In other words, the Management and all employees are committed to implement Risk Management.

In practice, Risk Management is part of the internal control system in the company. To that end, the Company has evaluated the effectiveness of the Risk Management system with the assistance of the Company’s Internal Audit unit and members of the Audit Committee to protect assets and all important financial resources, so that the Company is able to maintain its business sustainability.