CORPORATE GOVERNANCE TOWARDS SUSTAINABLE DEVELOPMENT

 

RISK MANAGEMENT


2018 witnessed strong volatility of the Vietnam Stock Market and many adverse impacts from the international market. VN-Index surpassed the historical high, setting a record on April 10, 2018 with 1,211 points. However, it was also from this new peak then fell sharply, upon the closing of the last session in 2018, VN-Index stood at 892.54 points, down by 26.3% from the peak, and by 9.32 % YoY. In such cases, the Company's risk management policies and procedures continued to be completed and updated, in line with business practices as well as risks arising from new business operations such as derivative securities. In addition, in order to improve the effectiveness of risk management activities, training activities on risk awareness and risk prevention have been widely provided to all employees. 

 

Risk management activities are carried out seamlessly from top to bottom, initiated by the BOD through the development of business strategy and risk tolerance limits for each type of risks and each specific Business Unit. It is carried out not only by Risk Management Department, but also right from each business unit, while there are inspections and monitoring from Internal Control and Internal Audit. 


The Risk Management is organized by types of risk in order to ensure a high level of specialization.

 

 

Risk management activities are conducted specifically according to the 5-step process as follows:

 

 

Different types of risks have been identified, prevented and handled as follows:

 

 

For details of risks and risk management activities, please find in “Corporate Governance” section in SSI Annual Report 2018.