WIKA realizes that risk has become an integral part of every business process. These risks are attached to all activities and decision-making and the impact of those risks can significantly affect the stability of the company. Along with its achievements as an EPC and Investment company, WIKA needs a risk management system that brings all forms of uncertainty into the Company’s focus.
Risk Management is becoming increasingly important as a basis for decision-making by the company to ensure that the business wheels of the company continues to spin. Risk Management is a culture, where processes and structures are managed and directed to appropriate management, against potential opportunities and adverse impacts.
Risk Management Organizational Structure
To measure, monitor, and manage the main risks faced when carrying out operational activities, the Company has a comprehensive risk management which refers to the Ministry of SOEs Regulation No. Per-01/MBU/2011 concerning the Implementation of Good Corporate Governance (GCG). As of May 31, 2018 the Company established a Risk Management Department that was further changed to the Risk Management & PMO Division, below the Board of Directors.
The main function of Risk Management & PMO Division is an integrated implementation, development and assessment of risk management system at Corporate from all management functions based on WIKA’s Vision/Mission and controlling the implementation of risk management system to support the achievement of the Company’s productivity. The Risk Management System organizational structure is as follows:
Risk Management Certification
The Risk Management Certification CRMO (Certified Risk Management Officer)
CRGP (Certified Risk Governance Professional) specifically at the BOD - 1 level.
CRMP (Certified Risk Management Professional)
Risk Management Systems
WIKA’s Risk Management System in 2021 is in the migration stage to ISO 31000:2018 by following the Principles, Frameworks, and processes as shown below. To support the implementation of effective risk management, the Company seeks to develop a Risk Management Framework, which is a set of components that form the foundation and regulates the organization, where risk management is inherent in each Division, Project, and Subsidiary within WIKA.
This Leadership and Commitment is carried out by Top Management so that risk culture and risk management can be measured (accountability). The purpose of Risk Management Framework is to significantly assist the Company in integrating risk management into its activities and work functions. Risk management (management system) is carried out by the Risk Management Function (Risk Management Department, according to the organizational structure above). Increasing the level of maturity (maturity) of risk mitigation is carried out by risk owners.
Evaluation Of Risk Management Implementation
Monitoring and review of all risk management activities must be planned and ongoing. Responsibility for each activity should be defined. These activities can be linked to internal audit activities for continuous learning and improvement, while the Review of Risk Management Guidelines, Procedures, and Work Instructions is carried out periodically at least every 2 (two) years. Meanwhile, in evaluating the implementation of risk management, the Company conducts periodic performance measurements by measuring the maturity level of risk management implementation at the Project, Division, and Subsidiary levels every year (risk maturity level).
To ensure that Risk Management is effective and supports organizational performance, the Company has implemented risk management by referring to the risk management system policy from the Board of Directors that is applicable in WIKA Group. In ensuring the implementation of targeted risk management, the Risk Management Department as the department that oversees the risk management in WIKA Group has compiled:
Risk Management System Guidelines
Risk Management Procedures
Work Instructions relating to Risk Management implementation.
In implementing risk management at WIKA, the Risk Management Department has 3 main work programs, namely:
Implementing Risk Management Maturity measurement aimed at WIKA Group environment
Improving the competencies of PIC Risk within WIKA Group
Risk Management Workshop for Tender Phase
WIKA’s risk management is measured by its level of maturity through a Risk Maturity Level Self-Assessment mechanism.
The results of 2021 Risk Maturity Level (RML) assessment within WIKA Group show the maturity level of risk management implementation with a score of 3.89 (managed).