The implementation of risk management at IPCM is part of the implementation of Good Corporate Governance (GCG). The main focus of implementing risk management is the main actors in business processes and organizations at every level. The implementation of risk management must create added value, be integrated with business processes, be part of the decision-making process, be transparent, systematic, structured, dynamic and responsive to change.

In implementing the company’s risk management system, it refers to ISO 31000: 2018 which relies on three important elements in the implementation of risk management.

• Policies or commitments held by the Company’s BOD;
• This policy absolutely must be socialized so that it is understood by all levels of company personnel.;
• Risk management system planning that extends to budget, organizational structure, performance and resources;
• So that the company’s risk management system can run well in accordance with the company’s actual and conditions;
• Implementation of a risk management system that adapts the plan, do, check,

“So that the system can be implemented and get benefits, implementing a risk management system using the PDCA Cycle includes implementation, monitoring, then carrying out evaluation through management review and improvement,” concluded the risk management consultant.

On October 17 2018 the company’s BOD and BOC jointly signed the Implementation Commitment and Road Map.

Risk Management from 2018 to 2023. The Company has implemented Risk Management in preparing the Management Work Plan for 2020. Risk management is based on accuracy on:

1. Accuracy of the Work Program (Management Work Plan) – By identifying risks within the department, an appropriate and efficient mitigation program will emerge for each Departmental RKM risk so that the RKM that has been determined can be achieved and will be in harmony with achieving the Company’s Vision.
2. Investment Accuracy – By managing investment risk, the entire budget allocation will be absorbed, and no additional costs will arise in the planned investment.
3. Cost Accuracy – Once the work program and investment plans for the coming year are known, the company can set a cost budget so that costs are used efficiently in achieving the company’s vision.

Risk Management Structure

The Company’s risk management structure is based on Directors’ Decree Number: HK-56/8/11/1/MS-19 concerning PT Jasa Armada Indonesia Tbk Risk Management Guidelines & Framework Decree dated November 8, 2019.

Risk Management Implementation Activities in 2020:

1. Launching the Risk Management IT System (manrisk IPCM) in all departments as risk owners;
2. Monitoring and evaluating risks by each department periodically every 3 (three) months, so that risks can be properly mitigated;
3. Training for Directors and Employees to improve Risk Management certification;
4. Activation of Business Continuity Management (BCM) for business continuity management in the Covid-19 pandemic within PT Jasa Armada Indonesia

Company Risk and Risk Mitigation Efforts

On March 2 2020, the President of the Republic of Indonesia announced that the first patient had been exposed to COVID-19, a new type of virus originating from Wuhan, China which eventually developed into a pandemic throughout the world.

PT Jasa Armada Indonesia Tbk ensures that port operations can continue to operate to maintain logistics distribution and the smooth flow of goods, mitigate and prevent Covid-19 by activating the Company’s Business Continuity Management Team.

Roles and Responsibilities In Corona Virus Business Continuity Guidelines (BCM)

1. Actively monitor information from Ministry of Health sources of the Republic of Indonesia on the development of the virus outbreak and work with management to disseminate messages to workers with clear instructions when action needs to be taken;
2. Educate workers about accurate and up-to-date information about the virus. Brief them so that workers are aware of the infection control measures and prevention procedures that have been established in place;
3. Compile the latest contact information for all workers, namely home addresses, telephone numbers of workers and families who are not in the same household as the worker. Make sure all workers have the contact number for the Business Continuity Leader (BCM)/department personnel participating in BCM;– Workers should contact the Business Continuity Manager if they feel sick with signs of suspected upper respiratory tract infection (ARI) for tracking purposes
4. Make sure that the company has appointed at least one designated Point of Contact (POC) (possibly a Business Continuity Manager), who will be responsible for liaising with external parties such as hospitals, regional governments, as well as the Central Government and Ministries related to handling the Corona Virus during the process;
5. Identify and collaborate with hospitals/clinics where workers suffering from fever, cough and respiratory system disorders may be taken
   

Risk 1: Worker Health & Safety

Risk 2: Cessation of Company Operations due to Supply Chain

Risk 3: Business Development & Income Plans Not Achieved

Risk 4: There are changes in policies and regulations to tackle the COVID-19 pandemic

Risk 5: Readiness of facilities and human resources to implement Work From Home.

Efforts to Manage Company Risk

Policies for managing company risks exist in all work units, or are called Risk Owners who have and are responsible for risk management as well as parties and individuals who work for and/or on behalf of the Company, either directly or indirectly, which influence the achievement of objectives and Company targets.

Improved Risk Awareness Culture Program

1. Establish a work environment that includes culture, communication, risk-based performance measurement and so on to support the overall implementation of Risk Management;
2. Creating a culture of risk awareness throughout the Company’s environment with an emphasis that Company risks are the responsibility of all Company employees;
3. Carrying out Risk Management Training and outreach in all line aspects
   
   Determination of a Risk Management strategy must also consider the complexity of conditions, organization and risks that arise as a result of changes in external and internal factors.