The Audit and Risk Committee is ultimately responsible for monitoring the effectiveness and quality of the risk management system across the Group.
Due to the nature of its activities, the Group has to deal with a range of risks which is significant. Therefore, for the risks which are particularly relevant at Business Sector level, their management is delegated to the appropriate Business Sector Board.
For the risks which are relevant across the Group and which may impact its ability to deliver its strategy, the ARC will ensure that the relevant functions, directors and entities are setting and implementing actions plans to mitigate these risks.
The table below summarises some of the risks whose management is critical for safeguarding the Group’s sustainability.
|Financial – the Myanmar Kyat volatility may continue and even become higher||The Group is importing a significant number of services and goods from abroad to conduct its operations. The costs of our projects, their profitability may be significantly impacted by the MMK fluctuations.||We are sourcing from Myanmar suppliers and are contracting with them in MMK as much as possible to reduce our exposure to exchange rate variations. Our finance team is also working to optimise the Group’s cash-flows, especially those designated in other currencies.|
|Social – the Group may lose its social license to operate.||The trust of our stakeholders allows us to operate quickly and efficiently.||Shwe Taung is engaging with its key stakeholders as much, as often as necessary to safeguard the quality of the dialogue between the different parties. The Group is committed to being transparent and to increase the quality of its corporate reporting.|
|Governance – the Group relies on a small number of key people.||Shwe Taung’s future is linked to its corporate governance, mainly to develop a pool of Directors able to oversee and steer the Group’s activities.||A new corporate governance framework was defined and is now implemented to support the Group’s transformation.|
|HR – the Group needs to attract and retain the right talent to sustain its development||Without the right skills, the Group will not be able to seize the market opportunities nor to deliver the added value expected by its different stakeholders.||The HR function is responsible for enhancing the HR management, to build Shwe Taung employer brand, and to offer to its people great careers’ opportunities.|
|Legal – a quick evolution of Myanmar legal landscape may alter our capacity to operate our business||Like every business, we rely on a clear set of rules and laws to allocate our resources. Any unplanned change may transform the economy of our business.||The Group is monitoring the evolutions of the legal landscape closely and is working closely with the relevant authorities to share its views, whenever necessary.|