Purpose
This Charter establishes the framework for identifying, assessing, monitoring and managing risks that may affect PT Sapta Borneo Utama's strategic objectives, operations, financing activities and stakeholder interests.
Risk Governance Structure
| Body | Responsibility |
|---|---|
| Shareholders | Strategic oversight |
| Board of Commissioners | Independent risk supervision |
| Board of Directors | Risk governance accountability |
| Risk Management Committee | Risk monitoring and review |
| Management Team | Operational risk implementation |
Risk Categories
| Risk Type | Description |
|---|---|
| Strategic Risk | Business strategy execution risk |
| Financial Risk | Liquidity, funding and market risks |
| Operational Risk | Process and operational failures |
| Project Risk | Construction and implementation risk |
| Legal & Compliance Risk | Regulatory and contractual obligations |
| ESG Risk | Environmental and social impacts |
| Reputational Risk | Stakeholder confidence and perception |
Risk Appetite Principles
- Preserve financial stability.
- Protect project financing obligations.
- Maintain regulatory compliance.
- Avoid excessive concentration risk.
- Prioritize safety and environmental protection.
- Support sustainable long-term growth.
Risk Assessment Process
| Step | Activity |
|---|---|
| 1 | Risk Identification |
| 2 | Risk Assessment |
| 3 | Risk Prioritization |
| 4 | Control Design |
| 5 | Monitoring & Reporting |
| 6 | Continuous Improvement |
Escalation Framework
| Risk Level | Escalation |
|---|---|
| Low | Management Review |
| Moderate | Risk Committee Review |
| High | Board Review |
| Critical | Immediate Board & Shareholder Notification |
Reporting Requirements
| Report | Frequency |
|---|---|
| Risk Register Update | Monthly |
| Risk Committee Report | Quarterly |
| Board Risk Report | Quarterly |
| Enterprise Risk Review | Annual |
Charter Statement
The Company is committed to maintaining a robust risk management culture aligned with international governance standards, institutional financing requirements and sustainable value creation.