Enterprise risk management framework
With endorsement from the Group Board of Directors, Vitasoy formalised our Enterprise Risk Management Process (ERM) and its relevant processes, structure, policies and procedures in 2016. Within the ERM Framework, our management team and all staff are required to anticipate, rate and respond to their relevant business risks on an on-going basis. The Vitasoy Risk Management Team consolidates inputs from business functions and reports results to the Board-level Vitasoy ERM Executive Committee through periodic face-to-face meetings and risk management reports.
In 2018, Vitasoy augmented the ERM process by enhancing accessibility through the introduction of a new platform, and by improving the effectiveness on risk status monitoring through the use of Key Risk Indicators (KRIs). In FY2019/20, Vitasoy also conducted a comprehensive risk assessment process with an emphasis on bilateral communications between Group Management, Group Functions, and local entities on the definition of risk ratings and priorities.
Governance, risk management and compliance system
In 2018, the Governance, Risk Management and Compliance System (GRC System) was launched to engage various level of staff in the risk management process. Under the system, all risk management activities are displayed through a dashboard tool to show real-time changes in risk status and help to facilitate management decisions using real-time ERM data.
Risk management training
We provide regularly scheduled, onsite risk management trainings for department heads and middle management staff to promote risk management awareness. Vitasoy fosters a culture of risk awareness through a dedicated column in our bi-monthly staff newsletter, and encourages steady communication on relevant topics between management and staff.
Sustainability risk management
The management of sustainability risks is embedded within the Vitasoy ERM Framework, and includes considerations of ESG risks alongside other business risks. Starting FY2019/20, ESG risks were further integrated with other relevant business and operational risks to monitor and mitigate relevant risk areas more comprehensively. All risk items indicated in the Risk Register include ESG considerations and require respective Risk Owners to include ESG implications when implementing the Anticipate, Rate and Response ERM process. In conjunction with this improved process, Vitasoy conducted an assessment of potential ESG issues embedded in our supply chain by leveraging recognised risk assessment tools. The analysis provides a more expansive perspective on our sustainability risks beyond our immediate scope of operations.