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    Risk Management Framework

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    Ridawati Limpu
    The document outlines SIA's risk management framework, which formalized in 2002. It includes a governance structure with oversight from the Board of Directors and various risk management committees. It also describes a standardized 5-step risk management process used to identify, evaluate, prioritize, reduce and review risks. This process employs strategies like risk prevention, mitigation and transfer. Additionally, the framework provides risk management principles, objectives and guidelines to direct business units in managing risks consistently.

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    Risk Management Framework

    Uploaded by

    Ridawati Limpu
    522 views3 pages
    The document outlines SIA's risk management framework, which formalized in 2002. It includes a governance structure with oversight from the Board of Directors and various risk management committees. It also describes a standardized 5-step risk management process used to identify, evaluate, prioritize, reduce and review risks. This process employs strategies like risk prevention, mitigation and transfer. Additionally, the framework provides risk management principles, objectives and guidelines to direct business units in managing risks consistently.

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    The document outlines SIA's risk management framework, which formalized in 2002. It includes a governance structure with oversight from the Board of Directors and various risk management committees. It also describes a standardized 5-step risk management process used to identify, evaluate, prioritize, reduce and review risks. This process employs strategies like risk prevention, mitigation and transfer. Additionally, the framework provides risk management principles, objectives and guidelines to direct business units in managing risks consistently.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    522 views3 pages

    Risk Management Framework

    Uploaded by

    Ridawati Limpu
    The document outlines SIA's risk management framework, which formalized in 2002. It includes a governance structure with oversight from the Board of Directors and various risk management committees. It also describes a standardized 5-step risk management process used to identify, evaluate, prioritize, reduce and review risks. This process employs strategies like risk prevention, mitigation and transfer. Additionally, the framework provides risk management principles, objectives and guidelines to direct business units in managing risks consistently.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    SIAS RISK MANAGEMENT FRAMEWORK

    1 RISK MANAGEMENT FRAMEWORK

    1.1 In 2002, SIA formalised its Risk Management Framework, encompassing a


    Governance & Reporting Structure, a standardised Risk Management Process and a
    set of risk management Principles, Policies and Guidelines.

    2 GOVERNANCE & REPORTING STRUCTURE

    2.1 Board of Directors - Annually, SIAs Board of Directors reviews and discusses the
    strategic and other key risks of the Group.

    2.2 Board Committees - The Boards oversight is supported by the Board Safety &
    Risk Committee (made up of independent Board Directors) and other Board
    Committees that review and ensure that specific top risks are managed
    appropriately. The Board Safety & Risk Committee oversees managements
    implementation of the Risk Management Framework and assesses the effectiveness
    thereof annually.
    SIA Group Risk Reporting Structure

    BOARD OF DIRECTORS

    Board Safety & Risk


    Committee

    SIA GROUP
    Risk Management Committee

    SINGAPORE AIRLINES SIA CARGO


    Risk Management Committee Risk Management Committee

    SIAEC Group SILKAIR


    Risk Management Committee Risk Management Committee

    TIGER AIRWAYS SCOOT


    Risk Management Committee Risk Management Committee

    Other Subsidiary Companies Risk Management Committee or equivalent


    2.3 Risk Management Committees - The Group Risk Management Committee and
    various Company Risk Management Committees drive the implementation of the
    Risk Management Framework, and through detailed review of specific risks and
    corresponding risk controls, ensure that risks are identified and managed, and
    surfaced for the Board Committees attention.

    2.4 Risk Management Function - A dedicated Risk Management Department provides


    support to the Risk Committees and to business units, ensuring that risks are
    surfaced by business units from the bottom-up to complement the top-down
    perspectives provided by top management and the Risk Committees. Risks are
    structured under 5 main categories Strategic & Reputation, Financial,
    Regulatory/Compliance, Human Resource/Industrial Relations and Operational/
    Environmental & Others for ease of communication and coordination.

    3 RISK MANAGEMENT PROCESS

    3.1 Structured Process - Within the Risk Management Framework, a simplified 5-step
    Risk Management Process is adopted to allow easier communication,
    understanding and application by all levels of staff. The 5-steps to Identify,
    Evaluate, Prioritise, Reduce and Review risks form a re-iterative flow of
    activities depicted as follows:

    SIAs 5-Step Risk Management Process

    3.2 Multi-pronged Strategies - Within this process, multi-pronged Risk Reduction


    strategies such as Risk Prevention, Risk Mitigation and Risk Transfer are
    employed to address the risks. Wherever possible, preventive measures are
    adopted and complemented with Crisis Management, Business Continuity and
    Disaster Recovery plans that are coordinated and integrated into a seamless risk
    response effort. Risk policies, guidelines and tolerance limits are incorporated into
    the process to ensure adequacy and effectiveness of risk responses.
    3.3 Embedded Activity - Twice each year, all business units carry out a Group-wide
    risk review to ensure that risk registers are kept current and risk controls are
    improved and up-to-date. These processes are embedded within the work
    schedules of the business units, and driven by the quarterly risk review activities of
    the Risk Committees.

    4 PRINCIPLES, POLICIES AND GUIDELINES

    4.1 Governing Philosophy - The overarching philosophy is provided by the Risk


    Management Policy Statement as follows:-

    SIA is to be a risk-aware organisation such that the taking of risks


    necessary for the achievement of its corporate objectives is carried out
    knowingly, and risks that represent a threat to SIA are managed so as to
    protect and enhance the value of the organisation in the interests of
    shareholders and stakeholders of SIA.

    4.2 Principles - A set of Risk Management Principles adapted from ISO 31000 provide
    the underlying basis for the scope and objectives of the risk management effort.
    Risk management should:
    (a) create and protect value by facilitating continual improvement of the organisation.
    (b) be an integral part of all organisational processes, including decision-making.
    (c) reduce the probability or consequences of the risk event.
    (d) be systematic, structured and timely.
    (e) be based on the best available information and reviewed regularly.
    (f) be customised to the needs of the organisation, including taking into account human,
    cultural and environmental factors.
    (g) be transparent and inclusive.
    (h) be dynamic, iterative and responsive to change.

    4.3 Corporate Risk Objectives - A set of corporate risk objectives guides business units
    in formulating plans to manage risks. These objectives can be represented by the
    mnemonic PEARLS and are:

    People - to protect People from harm or injury


    Environment - to protect the Environment from damage and pollution
    Assets - to protect the Assets of the company
    Reputation - to protect the Reputation of the company
    Liability - to protect against incurring Liability
    Supply-chain - to protect the Supply-chain against critical disruptions

    4.4 Controls and Limits - Written guidelines on managing specific types of risks
    provide the control boundaries and performance standards for business units to
    comply with in managing risks. All risk responses are required to be tested where
    practicable, to ensure that they are adequate to the risks identified, and effective in
    reducing the risks to within tolerance limits or better.

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