Risk Management
The Company recognizes that current business operations are subject to volatility and uncertainty from both internal and external factors, including geopolitical conflicts, cybersecurity threats, global oil price fluctuations, interest rate and foreign exchange volatility, and ESG-related risks. Therefore, the Company places significant emphasis on risk management as a critical tool to achieve organizational objectives and goals, reduce the likelihood of risk occurrence, minimize potential damage, and potentially create business opportunities that add value to the Company. Accordingly, the Board of Directors has established a Risk Management Committee to oversee and manage risks effectively and appropriately for business operations.
Risk Management Structure
The Risk Management Committee reviews risk management policies and governance frameworks, monitors risk management performance according to risk mitigation plans across all departments. The Risk Management Division reports quarterly risk management review results to the Risk Management Committee to ensure that significant risks, particularly high-level risks and emerging risks, can be reduced in terms of probability and impact to acceptable levels within the Company's risk appetite.
Risk Management Culture
Management and employees at all levels are responsible for implementing risk management frameworks and policies, recognizing risks inherent in their departmental and organizational operations, and establishing adequate measures or controls to reduce risk levels. The Company utilizes Key Risk Indicators (KRI) to monitor and manage risks, with regular reviews and improvements to align with organizational circumstances and strategies. Additionally, risk management is incorporated as a mandatory course in new employee training programs, supplemented by practical risk management training for employees to enhance understanding and enable effective implementation. The Company also provides education on cybersecurity threat risks.
Business Risk Factors
Read More +Emerging Risks
Global Climate Change Risk
Risk Management Approaches
- Implementation of Aircraft Fuel Efficiency Projects The Company has studied various approaches to improve operational efficiency, enabling each flight operation to use aircraft fuel efficiently and reduce carbon dioxide emissions. Additionally, the Company has implemented various measures to maximize carbon dioxide emission reduction during flight operations, such as planning and conducting flight operations with modern navigation technology, engine cleaning according to cycles, and analyzing data from flight operations to improve and develop flight operational efficiency to reduce carbon dioxide emissions. The Company has studied approaches to implement AI/Machine Learning technology to enhance data analysis accuracy under aviation safety regulations and requirements that ensure maximum safety.
- Study of Data and Preparation for Sustainable Aviation Fuel (SAF) It is expected that Thailand will begin using sustainable aviation fuel at a 1% proportion by 2026. The Company is preparing to implement measures and policies for international sustainability cooperation.
Geopolitical Risk
Risk Management Approaches
Understanding geopolitical risks and closely monitoring news to prepare and find ways to mitigate impacts. Monitoring important economic data such as inflation rates and exchange rates for flight planning and new business opportunities, including monitoring government tourism policies.
Technology Change Risk
Risk Management Approaches
Understanding and considering the appropriate implementation of Artificial Intelligence (AI) for the Company and conducting feasibility studies to seek business development opportunities.
Strengthening Risk Management Culture
Training or disseminating knowledge about risks and risk management to personnel
- Providing knowledge to new employees in orientation programs on basic risk management knowledge
- Conducting training and disseminating knowledge about various risks through the company's intranet system to ensure employees understand and are aware of risks and management, such as cybersecurity threats, information technology security understanding, workplace safety, and aviation security knowledge
Promoting employee awareness of risk management related to work performance
- Requiring all departments to review departmental and organizational risk assessments with risk-owning departments to identify risks that may arise from internal and external factors, while finding risk management approaches at appropriate levels, including preparing risk assessment documents RMD: Risk Management by Department and RMC: Corporate Risk Management, and monitoring high-level risk management measures to reduce them to appropriate levels
- Conducting drills to ensure employees understand and recognize the importance of safety risk management, including occupational health, work environment, and aviation security
