Enterprise Risk Management

Enterprise Risk Management 

The Company recognizes that risk is dynamic and is inherent in all external and internal operating environments, and that managing risks is vital in defining the organization’s purpose, process and expected results, which are the foundations of its daily operations. The risk management philosophy of the Company is to integrate risk management practices into its business strategy and performance to drive consistent, effective and accountable management in achieving the Company’s business objectives.

The Company, through the Board of Directors, shall promote a risk-aware culture by making risk management a responsibility of every employee and an integral part of the Company’s strategic and operational planning, and day-to-day management and decision making. The Board shall appoint a Chief Risk Officer (the “CRO”) who shall oversee and supervise entire enterprise risk management process and recommend improvement of ERM processes and documentation. The Company, through the CRO, shall manage and minimize risks by identifying, analysing, evaluating and treating exposures that may impact on achieving its objectives and the continued efficiency and effectiveness of its operations.

These activities are reviewed and monitored by supervising committees of the Board which is the Audit and Risk Oversight Committee (the “ARO”).

The ARO Committee provides oversight over the Company’s risk management processes. It monitors and reviews risk exposures and risk mitigation plans of the Company and evaluate the Company’s risk management systems for its effectiveness and adequacy. The Committee likewise annually reviews the Company’s approaches to risk management, and recommends as necessary to the Board regarding the Company’s risk management policies and procedures.

The Company will employ the “three lines of defense” approach where employees and associates involved in operations, line supervisors and managers and the compliance and audit staff are involved in actively managing the risks of SBS. The board of directors, on the other hand, is responsible for the oversight of this effort.


SBS Enterprise Risk Management Policy