Risk Management & Compliance                                                             

 

 

Risk Management and Compliance Strategy

In 2023, the world slowly began to emerge from the grips of the COVID-19 pandemic, and business activity had resumed but it had not yet reached pre-pandemic levels. The situation had been further complicated by the Russian-Ukrainian War, China's lockdowns, rising inflation, increasing energy prices, and exchange rate fluctuations, all of which had the potential to affect business operations directly and indirectly. Furthermore, natural disasters resulting from the effects of global warming posed an additional threat to the sustainability of business operations. Moreover, as awareness of climate change grew, consumers were increasingly demanding sustainable products and services. This had led to the rise of eco-friendly products and services, requiring businesses to adapt their product and service offerings and marketing strategies.

BJC realized that it was crucial that the company carefully consider these external factors and their potential impacts when crafting sustainable business strategies. The company recognized the urgent need for corporate risk and crisis management in today's ever-changing and unpredictable global landscape by going above and beyond to mitigate the risks and challenges associated with these issues. BJC's proactive approach to risk management in 2023 involved identifying potential risks and implementing measures to address them before they become crises. For instance, the company had taken significant steps to reduce its carbon footprint and promote sustainable practices across its diverse portfolio of businesses. By investing in various initiatives, BJC was not only mitigating the risks associated with climate change, but also going beyond that by demonstrating its commitment to environmental sustainability and social responsibility.

 

Risk Management and Compliance Management Approach

BJC has prioritized risk and crisis management as an integral part of its business strategy. By conducting risk assessments and developing comprehensive crisis response plans, BJC is prepared to respond quickly and effectively to unexpected events, such as natural disasters or political instability. Through its commitment to risk and crisis management, BJC is demonstrating its dedication to ensuring the long-term success and sustainability of its business, while also contributing to a more resilient and sustainable economy. At BJC, corporate risk management is held in high regard. To ensure effective Corporate Risk Governance, the Risk Management Committee authorized by the Board of Directors, oversees the risk management process, while senior management keeps a watchful eye on the risk management of each business unit. Moreover, to further ensure the effectiveness of enterprise risk management of the organization and aligned with the international standards such as ISO 31000, the company conducts an internal audit of the risk management process by Group Internal Audit Department's experienced personnel with a full understanding of BJC's nature of business and supporting functions. As well as an external audit that was conducted in 2023, with no non-compliance issue. The Risk Management Committee also formulates and reviews corporate-wide risk management policy, goals and frameworks to be appropriate for the company's business operations in accordance with the national and international standards. Furthermore, BJC's corporate risk management strategy goes beyond simply assessing risks. In fact, the company also actively seeks out new business opportunities that arise from potential risks. This approach not only ensures the preservation of company value but also creates additional value for both BJC and its stakeholders.

 

Risk Governance

 

 

The Risk Management Committee (RMC) is structural independence from the business units to supervise enterprise risk management, including define the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of company objectives. Risk Management Subcommittee (RMS) reviews, creates, identifies and assesses BJC’s corporate and business unit level risks. The subcommittee will assess, consolidate and report corporate and ESG's risk assessment and risk exposure on a regular basis to the Risk Management Committee and BJC’s Board of Directors on a quarterly and annual basis respectively. Audit committee is responsible for evaluate the efficiency of BJC’s risk management to ensure the relevance and effectiveness.

 

Moreover, BJC's non-executive members of the board of directors consist of experts with diversed experiences and backgrounds. There are 2 non-executive members of the board of directors with expertise in risk management: 1) Mr. Tevin Vongvanich, who has experiences in risk management from Amata Corporation Public Company Limiteda and Indorama Ventures Public Company Limited 2) Ms. Potjanee Thanavaranit, who had a training on Risk Management Program for Corporate Leaders from Thai Institute Of Directors (IOD).

 

Additionally, Sustainability and Risk Management Division (SRM) support risk communication to build a risk culture by educating employees at all levels on the importance of risk management, including the development of a common language, creating the understanding and supporting management decisions. SRM promotes the effectiveness of project-level and enterprise-wide risk management with the focus on raising risk awareness for the management and staff to have proper and appropriate utilization of resources and involvement in actions.

 

BJC strictly complies with the principles of supervision and risk management outlined in The Three Lines Model (2020) of Institute Auditors: IIA, cascaded into the 'Three Lines of Defense’ process to oversee risk management, separating structures, roles, duties, responsibilities, and decision-making authority, ensuring process transparency through BJC’s Board of Directors, Risk Management Committee (RMC), Risk Management Subcommittee (RMS), Audit Committee and Sustainability and Risk Management Division (SRM).

 

Highest ranking person with dedicated risk management responsibility on an operational level: Ms. Anchalee Rimviriyasab, Chief Financial Officer.

Reporting line: Sustainability and Risk Management Division (SRM) reports to Risk Management Committee (RMC) concerning overall risk management in the organization. This includes risk analysis of impacts to the company if such risks were to occur, in order to ensure the effectiveness of BJC’s risk management plan. Risk Management Committee’s meeting is held quarterly (4 times per annum). The Chairman of RMC reports to the Board of Directors on the company's overall risk management performance on a quarterly basis. Meanwhile, SRM also reports to the CEO and President to ensure that the risk management execution plan is aligned with business strategy, on schedule, as well as effective in managing risk within risk appetite.

Highest ranking person with responsibility for monitoring and auditing risk management performance on an operational level: Mr. Phadya Sootrsuk, Head of Group Internal Audit Division.

Reporting line: Group Internal Audit Division (GAD) directly reports to Audit Committee (AC) to consult and assess whether operational and compliance control policies and strategies in status quo cover existing and emerging risks to the company. The reporting line enables independent assessment without potential conflict of interests coming from other departments. Audit Committee’s meeting is held at least quarterly (4 times per annum) with the addition meetings between internal auditors to expression of independent opinions without Management’s influence. The chairman of AC reports to the Board of Directors on the company's overall control and relevant issues on a quarterly basis.  Meanwhile, GAD also reports the implementation of projects or activities contributing to risk management, monitoring and auditing to CEO and President, to ensure effective internal control cover financial, operational and compliance control.

 

Three Line of Defense

Berli Jucker public Company Limited and the group company (BJC Group) implemented the "Three Lines of Defense" principle, a well-regarded methodology in risk management and governance, to safeguard its operations and ensure long-term success.

 

1st Line Defense

The operational management and employees of BJC served as the primary line of defense. These committed experts served as the company's primary defense, overseeing daily activities and immediately handling any potential risks. They proactively established internal controls and processes to effectively address any potential concerns. Each and every employee, regardless of their position, made a substantial contribution to the company's transparency and efficiency.

 

2nd Line Defense

The Risk Management Division represented the Second Line of Defense. This team of experts was responsible for supervising and directing the initial operations, ensuring that the existing controls and procedures were not only sufficient but also efficient. BJC provided essential frameworks, methodology, tools and training to operational managers and employees, enabling them to gain a comprehensive understanding of potential risks and effectively control them. The Risk Management Division oversaw adherence to regulations and evaluated potential risks, responding to improve procedures and address any emerging issues before they could worsen.

 

3rd Line Defense

The Group Internal Audit served as the Third Line of Defense in BJC's defense system. This team of proficient auditors delivered independent and objective assurance, assessing the efficiency of both the primary and secondary lines of defense (Risk management and compliance processes). They carried out comprehensive audits, examining each aspect of BJC's operations and governance. The Group Internal Audit provided direct reports to Audit Committee and indirect reports to CEO and President and the Management Board, delivering insights and recommendations to improve the overall control environment. Their evaluations and finding with recommendations were essential for upholding transparency and accountability within the company.

 

By incorporating these three levels of safeguarding and Berli Jucker Public Company Limited strengthened its resilience against potential risks and uncertainties. The collaboration between the operational management, the Risk Management Division, and the Group Internal Audit established a strong structure that safeguarded the company and facilitated its sustainable expansion and success. By adopting a complete approach, BJC was able to maintain its resilience and agility, enabling it to effectively address issues and capitalize on opportunities in a constantly changing business environment.

 

Risk Assessment and Management Process

 

BJC has a continuous risk management with the following Risk Assessment and Management Process;

 

 

BJC has established policies and risk management process in order to assess, consolidate and report cooperate and ESG risk assessment on quarterly basis and annual basis respectively. In 2023, processes across BJC’s business group have 100% of risk assessment in all business unit, and 100% of all business unit have mitigation plan. The assessment has been implemented throughout BJC to constantly monitor  risk management processes. Throughout the procedure, the key cooperate risk (KRI) is developed to serve as a predicator for precaution and monitoring of risk management efficiency.

Furthermore, BJC uses RM online system to collect data and prepare risk reports of business units to achieve more efficient risk management. As for the risk assessment, the risks are categorized as follows;

 

 

 

The RM online system enables the business units to access risk management real-time, anytime and anywhere. The system also saves time for BUs by providing risk evaluation tools, which are relevant to the objectives of each BU. This allows the Risk Impact to be more accurately calculated and the risk impact can better reflect the current situation of different business operations. Finally, the root causes of the risks are determined as well as the impact of the risks, which includes financial impact and non-financial impact. The Risk Level is then determined by assessing the impact and likelihood of the risks. The company assess the risk level before inherent risk, and then identify the existing management and management that needs to be done so that the level of residual risk is acceptable. For the risk management that needs to be done, responsible persons are assigned and the due date is also set.

 

Risk Management 2023

 

BJC realizes the need of continuous learning and adaptation in order to navigate economic changes and unforeseen situations. Additionally, they emphasized the value of contributing to and being responsible for the environment and society. As a consequence, BJC has established a business operation strategy, including proactive and passive measures, to ensure that the business runs effectively and efficiently. BJC assesses potential positive (Opportunity) and negative (Risk) factors impacting business operations for the benefit of all stakeholders and the long-term sustainability of the company.  

As for Emerging Risk, BJC monitors news and information then the company considers related risks continuously to formulate prompt and appropriate mitigation actions. After the analysis, the significant emerging risks at present which may affect BJC's business are updated and described below.

 

Emerging Risk
 

1. Risk from Rising Costs of Living for Customers

As the global economy continues to navigate the aftermath of the COVID-19 pandemic, consumer demands have generally returned to pre-pandemic levels. However, the ongoing Russian-Ukraine war, along with other geopolitical tensions, has led to significant price increases in various product groups, including energy, fertilizers, and food. This escalation has resulted in higher costs of living for consumers, compounded by supply chain disruptions and more frequent natural disasters linked to global warming. These factors together have led to increased BJC operational costs and higher prices for consumers, ultimately affecting their purchasing power.

 

Business Impact

The rising costs of living predominantly adverse influence on the retail sector as they reduce the purchasing power of consumers, which in turn leads to a decrease in sales of unnecessary and costly items. This is because consumers prioritize essential goods and look for products that offer value for their money. Big C as a retail businesses are under additional pressure as a result of this shift in consumer behavior, which, when combined with increased operational expenses driven due to higher costs of energy, transportation, and raw materials, also contributes to the situation. As retailers strive to attract and retain customers with limited budgets, the competitive landscape becomes more intense. This may result in price wars and promotional activities that can significantly reduce profit margins.

 

Mitigation Plan

In order to address these challenges, Big C prioritize the promotion of our private label products that provide high quality at affordable and competitive prices, the enhancement of operational efficiency in order to control costs, and the utilization of data analytics in order to tailor product offerings and marketing strategies. The implementation of dynamic pricing and targeted promotions, the diversification of product lines to include more necessary items, and the strengthening of customer relationships through personalized marketing and excellent service are all strategies that can assist in attracting and retaining our customers.

Furthermore, BJC Big C collaborates closely with suppliers to expand their capacity, as well as explore sourcing locally in order to minimize transportation costs and assure a consistent supply of products. In addition, we negotiate improved terms and conditions, which may be beneficial in maintaining competitiveness in an increasingly competitive market. 

 

2. Risk from New Laws Related to Climate Change

Risk posed by recent legislation associated with climate change after the 26^th Conference of the Parties (COP26) organized by the United Nations Framework Convention on Climate Change (UNFCCC), global awareness on the significance of addressing global warming and climate change has increased, especially in Thailand. As a result, various government agencies and relevant entities are contemplating the implementation of legislation and regulations pertaining to climate change, such as the Climate Change Act (also known as the Global Warming Act) and Carbon Tax. These measures are expected to be imposed within the next 1-2 years. Government agencies are prioritizing various environmental measures in addition to the previously enforced Extended Producer Responsibility (EPR) statute, which specifically applies to packaging. These policies encompass the reduction of plastic usage, particularly single-use plastics, and the enforcement of more rigorous waste separation guidelines, which are anticipated to be more strictly enforced in the near future. Successfully navigating the current regulatory environment can be difficult due to the potential for non-compliance with carbon tax legislation, which could result in financial penalties and harm to one's reputation.

 

Business Impact

The introduction of new laws and regulations related to climate change, such as the Climate Change Act, Carbon Tax, and Extended Producer Responsibility (EPR) law, poses significant challenges for businesses. Compliance with these regulations may require changes and improvements in current operational processes, such as implementing energy saving process, waste separation measures and reducing plastic usage. These adjustments could lead to increased operational costs, including legal expenses associated with the carbon tax. Additionally, adapting to new regulations demands substantial resources, including manpower, time, and investments. Failure to comply fully and accurately with these regulations could result in financial penalties and reputational damage. Furthermore, the need for continuous monitoring and adaptation to regulatory changes can strain business resources, impacting overall efficiency and profitability.

 

Mitigation Plan

In order to manage these risks associated to upcoming climate change policies, BJC implement the following mitigation strategies:

 

• Implement Active Monitoring and Engagement by the specialized group especially Legal team to consistently monitor and track regulatory changes concerning climate change.
• Cultivate robust partnerships with government agencies and relevant groups, such as the Greenhouse Gas Management Organization (TGO) and the Federation of Thai Industries. Engage actively in industry associations and projects such as the Carbon Neutral Network of Thailand to be well-informed about forthcoming legislation and to have a venue for offering input and suggestions.
• Strengthen BJC data gathering system to precisely monitor greenhouse gas emissions and other environmental impacts. To uphold conformity with international standards and strengthen the reliability of publicly published information and having third-party verification to validate the accuracy of the data.
• Establish and execute all-encompassing strategies to reduce the release of greenhouse gas emissions such as the installation of solar rooftops that promote the use of renewable energy, the implementation of projects aimed at reducing consumption of electricity, and the transition of transportation vehicles to electric vehicles (EVs). These measures are aimed to reduce the negative effects of carbon prices and other regulations.
• Regularly conduct training sessions for employees to enhance their understanding of new law and regulations and emphasize the significance of adhering to them.
• Develop a close working relationship with suppliers to ensure their comprehensive understanding and adherence to newly implemented environmental law and regulations. Promote the adoption of sustainable practices among suppliers that are in line with BJC's objectives, and give priority to forming partnerships with suppliers who are committed to lowering their environmental footprint.

 

3. Risk from Biodiversity Loss

In the year 2023, natural ecosystems and biodiversity continue to be in severe risk as a result of persistent dangers such as drought, floods, wildfires, deforestation, soil degradation, and marine degradation. In addition to the appearance of new diseases and invasive species, climate change continues to worsen these problems, so generating a complex web of hazards that increases the chance of the extinction of species and the collapse of ecosystems on a global scale. Due to the fact that Big C relies on natural ecosystems for the growing of its fresh food items, the potential for the loss of biodiversity has become an important cause for concern. This risk poses a threat to both the quality and quantity of agricultural products, which might ultimately result in shortages that last for an extended period of time and increased prices for the raw materials that are affected. The subsequent increase in cost of production would be a consequence of these increased costs, which would have an effect not just on BJC's operations but also on its whole supply chain.

 

Business Impact

There is the potential for a loss of biodiversity to have a domino impact on many different parts of the ecosystem. To be more specific, it may limit the capacity of particular plants or animals to reproduce or flourish in the environment in which they are naturally found. As a consequence of this, it has immediate implications for the agricultural, livestock, and fisheries industries, which are the key sources of raw materials and merchandise for the company. It is also possible for this loss of biodiversity to result in shortages in the supply chain, which can lead to an increase in the costs of production for the business. As a means of preserving its profitability, BJC might have to increase the pricing of its products. Unfortunately, this increase in pricing can also have an effect on the decisions that customers make regarding their purchases. As a result of an increase in the cost of products, customers may decide to purchase fewer items or select those that are more vital to their daily lives, which eventually results in a reduction in revenue for the company. Businesses, particularly those that are dependent on agricultural products, may face difficulties as a result of the potential implications of biodiversity loss. This is because the loss of biodiversity may have an effect on the overall quality and quantity of supply. This, in turn, could result in shortages of items in the future, which would then lead to an increase in pricing for the raw materials that were affected, which would ultimately lead to an increase in manufacturing costs. In addition, there is a possibility that the raw materials or products might not live up to the quality standards that are expected by the customers.

Additionally, BJC Group purchases agricultural produce at a rate of nearly 50,000 tons per year for the purpose of using it as raw materials in their factories and selling it in our stores. This accounts for more than 40% of the total revenue that BJC Group generates. As a result, the consequences of the conservation of biodiversity and the destruction of the environment will become apparent during the production process, which will result in increased expenses for the company. Following this, it is possible that the process of selling products will become more challenging due to problems involving quality and cost that are inconsistent with the preferences of customers. Revenue will be affected as a result of this. In the event that these issues continue to exist and are unable to be mitigated or handled, it is likely that they may eventually lead to a significant scarcity of essential raw materials or goods, which will finally result in BJC group experiencing an absence of revenue in accordance with the situation.

 

Mitigation Plan

A comprehensive Environment Policy and Biodiversity Policy have been implemented by BJC with the purpose of preserving the environment and biodiversity as well as directing the organization's operations. The corporation carried out exhaustive assessments of every operational region in 2023 and implemented management practices in accordance with the findings in order to ensure that the risks to biodiversity were reduced to the greatest extent possible. Therefore, in order to accomplish this target, the manufacturing operations that the business operated carried out biodiversity surveys in order to evaluate the impact that their business operations had on the environment.

Additionally, the company provided training to employees working in various departments that were responsible for causing environmental impacts, with the intention of educating and raising awareness. In addition, BJC rapidly encouraged its suppliers to acknowledge the significance of biodiversity conservation, and it collaborated with the suppliers to make certain that their actions were in line with the objectives of the company. In addition, the following further acts were carried out in the year 2023:

 

• Forest protection was given a large amount of importance by BJC, and the company took measures to prevent deforestation. These measures included planting trees in both land forests and mangrove forests, as well as obtaining pulp certification from the Forest Stewardship Council (FSC) for the production of tissue paper.
• Additionally, BJC was dedicated to the implementation of responsible waste management techniques in order to reduce the negative impact that it had on the environment. The company was developing a number of projects, including a circular farm.

 

 

Compliance Risk

 

The introduction of a carbon tax in Thailand presents a significant challenge for many businesses, particularly those in heavy industry and the retail sector, where operations heavily depend on electricity. This tax, designed to reduce carbon emissions, imposes a cost on the carbon content of fossil fuels and other carbon-emitting activities. At Berli Jucker Public Company Limited (BJC), we recognize both the challenges and opportunities this regulatory change brings. To prepare for its impact, we have conducted a thorough analysis of both the positive and negative consequences. Here, we outline the key risks associated with the carbon tax and our strategic actions to manage them.

 

Risk from New Laws Related to Climate Change

Risk posed by recent legislation associated with climate change after the 26^th Conference of the Parties (COP26) organized by the United Nations Framework Convention on Climate Change (UNFCCC), global awareness on the significance of addressing global warming and climate change has increased, especially in Thailand. As a result, various government agencies and relevant entities are contemplating the implementation of legislation and regulations pertaining to climate change, such as the Climate Change Act (also known as the Global Warming Act) and Carbon Tax. These measures are expected to be imposed within the next 1-2 years. Government agencies are prioritizing various environmental measures in addition to the previously enforced Extended Producer Responsibility (EPR) statute, which specifically applies to packaging. These policies encompass the reduction of plastic usage, particularly single-use plastics, and the enforcement of more rigorous waste separation guidelines, which are anticipated to be more strictly enforced in the near future. Successfully navigating the current regulatory environment can be difficult due to the potential for non-compliance with carbon tax legislation, which could result in financial penalties and harm to one's reputation.

 

Business Impact

The introduction of new laws and regulations related to climate change, such as the Climate Change Act, Carbon Tax, and Extended Producer Responsibility (EPR) law, poses significant challenges for businesses. Compliance with these regulations may require changes and improvements in current operational processes, such as implementing waste separation measures and reducing plastic usage. These adjustments could lead to increased operational costs, including legal expenses associated with the carbon tax. Additionally, adapting to new regulations demands substantial resources, including manpower, time, and investments. Failure to comply fully and accurately with these regulations could result in financial penalties and reputational damage. Furthermore, the need for continuous monitoring and adaptation to regulatory changes can strain business resources, impacting overall efficiency and profitability.

 

Mitigation Plan

In order to manage these risks associated to upcoming climate change policies, BJC implement the following mitigation strategies:

 

• Implement Active Monitoring and Engagement by the specialized group who have experience that will consistently monitor and track regulatory changes concerning climate change.
• Cultivate robust partnerships with government agencies and relevant groups, such as the Greenhouse Gas Management Organization (TGO) and the Federation of Thai Industries. Engage actively in industry associations and projects such as the Carbon Neutral Network of Thailand to be well-informed about forthcoming legislation and to have a venue for offering input and suggestions.
• Implement a centralized data gathering system to precisely monitor greenhouse gas emissions and other environmental impacts. To uphold conformity with international standards and strengthen the reliability of publicly published information and having third-party verification to validate the accuracy of the data.
• Establish and execute all-encompassing strategies to reduce the release of greenhouse gas emissions such as the installation of solar rooftops that promote the use of renewable energy, the implementation of projects aimed at reducing consumption of electricity, and the transition of transportation vehicles to electric vehicles (EVs). These measures are aimed to reduce the negative effects of carbon prices and other regulations.
• Regularly conduct training sessions for employees to enhance their understanding of new law and regulations and emphasize the significance of adhering to them.

 

Develop a close working relationship with suppliers to ensure their comprehensive understanding and adherence to newly implemented environmental law and regulations. Promote the adoption of sustainable practices among suppliers that are in line with the company's objectives, and give priority to forming partnerships with suppliers who are committed to lowering their environmental footprint.

 

Raising Risk Awareness and Education

The Risk Management Division has introduced yearly Enterprise Risk Management (ERM) training covering Enterprise Risk Management principles, framework and process throughout the organization to build and enhance an effective risk culture, in accordance with COSO Requirements.

The Enterprise Risk Management Framework (ERM) offers instruction on assessing, minimizing, and monitoring relevant risks for each business division, as well as establishing a system for monitoring both new and existing business units (upon request). A risk management workshop was organized at the organizational level, involving responsible people from each business unit/factory. The purpose was to enhance their understanding of risk management and raise awareness among all employees. The objective was to foster an in-depth knowledge of proper risk management practices among all employees. BJC has developed a Standard Operating Procedure (SOP) for Enterprise Risk Management in the Risk Management Online System (Company Intranet). This SOP helps with risk assessment processes while rendering data collecting more efficient in the upgraded system. 

 

In 2023, the Risk Management team conducted training sessions for employees in the manufacturing sector and required employees. Additionally, they expanded the Enterprise Risk Management training to include potential suppliers. The training session has been held on November 2023, with the following topics;

• Importance and framework of Enterprise Risk Management
• Enterprise Risk Management process and methodology
• Risks trends (Cover Business risk, Environmental Social and Governance risk and emerging risk)

 

On a yearly the Risk Management Division presents a Top Risk Summary to both the Risk Management Committee (RMC) and the Sustainable Development Committee (SDC). The Top Risk Summary encompasses global risks, significant risks, and emerging risks that BJC firms currently encounter, along with a Risk Prevention and Mitigation Plan and the most up-to-date risk management strategies. The information was gathered and collected from reliable sources such as publications, research papers, and other credible references. Therefore, the report will be escalated to the executives of each Business Unit for review of the adequateness, appropriateness, and efficiency of their risk management plans and control measures in managing risks to risk appetite (acceptable level) and in accordance with established risk management principles. The purpose of this is to allow RMC and SDC to ensure that BJC's risk management is both effective and efficient, as well as suitable for the present scenario

 

To cultivate an effective risk culture, BJC has integrated risk management processes, procedures, and employee awareness throughout its operations. This integration involves regular education on risk management for non-executive directors and comprehensive training for all employees on the risk management framework and Enterprise Risk Management processes, provided both at the corporate level and as required by individual business units.

 

Additionally, in its New Product Development (NPD), BJC meticulously considers various risk factors, including financial, regulatory, and operational risks, among others. Furthermore, BJC strategically links significant risk and opportunity-related issues to employee incentives, ensuring a cohesive and proactive approach to risk management across the organization.

 

Crisis Management

The Crisis Management Team (CMST) consists of representatives from many departments, including the Crisis Management Leader, Communications, Operations, Human Resources, Legal, IT, Finance, Supply Chain, and so on. The CMST is usually a senior executive who oversees the entire crisis management process and coordinates amongst departments.

 

Crisis Management Structure

 

The CMST role and responsibility include identifying and evaluating potential threats and emerging crises, developing and implementing a comprehensive crisis management strategy, and conducting frequent drills to ensure readiness. They will coordinate response operations across departments, provide clear and timely information to stakeholders, and efficiently manage resources during a crisis. They are also in charge of establishing and implementing business continuity strategies, maintaining legal and regulatory compliance, and dealing with any legal issues that arise. Following a crisis, they perform a thorough analysis of the response, identify lessons learned, and revise the crisis management plan to better prepare for future responses.

 

1. Flood, Windstorm and Natural Disaster Recovery & Preventive Actions: Coordinated with Big C employees at nearby branches to support affected branches for inventory handling, flood prevention and product transfer. Followed updates from government agencies (Meteorological Department, National Water Administration, Hydrographic Department) and alerted Big C branches for surveillance. Provided a guideline and protocol for flood and storm prevention and monitored areas with high risk. Rechecked the stability of Big C branches and factory buildings located at areas with high risk.
2. Insurgency in the South of Thailand (3 southern border provinces) Recovery & Preventive Actions: Set up a war room to coordinate the affected Big C branches and provided assistance. The war room also monitored the situation closely and report to the crisis management team. Coordinated with local security agencies and created a group line to monitor the situation within the areas. Communicated crisis plan in case of finding suspicious objects to Big C branches in the south of Thailand as well as rehearsing the action plan. Assigned other Big C branches to be a “store partner” to support affected branches in case of emergency.
3. COVID-19 Recovery & Preventive Actions: COVID-19 prevention measures had been reduced to align with Thailand’s public health. Adjusted protocols for infected people: quarantine for 5 days, and high-risk contacts could work normally. Encouraged employees to receive 3 or more doses of COVID-19 vaccine. Remained the focus on DMHT: Distancing, Mask wearing, Hand washing and Testing. Monitored the situation of infected people weekly and monitored the situation updates from the Department of Disease Control, the Ministry of Public Health.
Other Crisis Preventive Actions   Conducted bare-handed combat skills training and mass-shooting contingency plan for BJC head office. Conducted advance firefighting training for Big C branch fireman officers.