CORPORATE GOVERNANCE
Enterprise Risk Management
To ensure a high standard of business practice for the Corporation and its stakeholders, the Board has established an annual risk management plan to manage risks considering their impact, and seize opportunities that relate to the achievement of objectives.
A Risk Management Committee has been formed to assist the Board of Directors in fulfilling its oversight responsibilities with regards to identifying the risks and the control processes to manage such risks.
The President/COO, all members of executive management team and management heads of each of the operating subsidiaries and affiliates meet on a weekly basis to evaluate and discuss the operational and financial performances. Identification and evaluation of business risks and the corresponding control processes were also discussed in the meeting.
The MAC Group observes the following four-objective categories of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) ERM Framework as its standard:
- Strategic– high-level goals, aligned with and supporting its mission
- Operations– effective and efficient use of resources;
- Reporting– reliability of operational, financial and non-financial reporting;
- Compliance– adherence to applicable laws and regulations.
In 2015, MacroAsia Corporation and Subsidiaries recognized some risk exposures that have potential impact on the Group.
Risk Exposure
Risk Management
Operational and financial risks of subsidiaries and affiliates
- Group-wide monitoring process performed by executive/management committee held on a weekly basis.
Global Economic Slowdown
- Aggressive marketing, offering of innovative products and service;
- Optimizing resources and provision of quality services;
- Sustainable cost leadership efforts.
Industry Regulations
- Year-round preventive maintenance of helicopter unit and ground support equipments in accordance with the manufacturer’s specifications;
- Employees year-round training program in order to keep up with the latest trends with emphasis on operational safety, reliability and customer service;
- Regular audits to ensure compliance with local and international quality standards;
- Regular renewal of accreditations and certifications to ensure services are carried out in accordance with respective countries’ aviations regulations.
Competition
- Maintain close relationships with airline clients, which in turn enables reciprocal arrangements for auxiliary aviation services;
- Strong backing of the Company’s venture partners for a globally-competitive expertise and market reach;
- Operational funding requirements and adequate capital to continue and expand its existing businesses and develop or venture into new business activities.
Volatility of Foreign Exchange Rates
- Engage in foreign exchange hedging transactions to minimize impact of losses from such fluctuation;
- In the case of the parent company, maintaining the currency portfolio as per the guidance received from the Investment Committee.
Valuation of Non-Current Assets
- Non-current assets are adjusted at fair values for impairment, recoverability and timing of reclassification.