Bangkok Insurance Makes Significant Efforts <strong>in</strong> Every S<strong>in</strong>gle Step
<strong>We</strong> <strong>aim</strong> <strong>to</strong> <strong>be</strong> <strong>the</strong> <strong>most</strong> <strong>preferred</strong> <strong>non</strong>-<strong>life</strong> <strong><strong>in</strong>surer</strong> <strong>in</strong> <strong>Thailand</strong> <strong>We</strong> cont<strong>in</strong>uously improve <strong>the</strong> quality of our services <strong>to</strong> ensure complete cus<strong>to</strong>mer satisfaction. Our cooperative garages are accredited under our çBKI Recommended Garageé project. RISK FACTORS S<strong>in</strong>ce 2008 and cont<strong>in</strong>u<strong>in</strong>g <strong>in</strong><strong>to</strong> 2009, <strong>Thailand</strong>’s economy has <strong>be</strong>en sluggish as a result of <strong>the</strong> global economic recession coupled with domestic political unrest. Most governments across <strong>the</strong> world, <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> Thai government, have constantly <strong>in</strong>itiated several measures <strong>to</strong> try <strong>to</strong> counter <strong>the</strong> slowdown <strong>in</strong> <strong>the</strong> economy, result<strong>in</strong>g <strong>in</strong> signs of an overall global economic recovery. None<strong>the</strong>less, we are still confronted with risks of various k<strong>in</strong>ds. The Company has <strong>be</strong>en fully aware of risks related <strong>to</strong> its bus<strong>in</strong>ess transactions and implemented a risk management policy <strong>to</strong> reduce <strong>the</strong> chance of those risks. The follow<strong>in</strong>g are risk fac<strong>to</strong>rs which can have an impact on <strong>the</strong> Company’s performance. 1. Strategic Risks Strategies are significant for any organization’s success. They range from direction determ<strong>in</strong>ation <strong>to</strong> strategy implementation and transformation, from <strong>the</strong> organizational level <strong>to</strong> departmental level. The risks that may occur are, for <strong>in</strong>stance, strategies <strong>in</strong>congruous and <strong>in</strong>appropriate <strong>to</strong> bus<strong>in</strong>ess transaction environments. To manage strategic risks, <strong>the</strong> Company, through its Corporate Strategy Department, has cont<strong>in</strong>uously reviewed its strategies <strong>in</strong> order <strong>to</strong> see whe<strong>the</strong>r <strong>the</strong>y are still suitable <strong>to</strong> rapidly chang<strong>in</strong>g environments. In addition, <strong>the</strong> Department is also <strong>in</strong> charge of summariz<strong>in</strong>g <strong>the</strong> status of <strong>the</strong> Company’s performance based on its strategic plans and will, at an appropriate time, display <strong>the</strong> status of an accomplishment of <strong>the</strong> plans and give a warn<strong>in</strong>g signal for those plans that have <strong>to</strong> <strong>be</strong> adjusted. The management of such risks has enabled <strong>the</strong> Company <strong>to</strong> see <strong>the</strong>m <strong>in</strong> time and establish preventive measures, so turn<strong>in</strong>g <strong>the</strong> risk <strong>in</strong><strong>to</strong> a bus<strong>in</strong>ess opportunity <strong>in</strong>stead. 2. Underwrit<strong>in</strong>g Risks Underwrit<strong>in</strong>g risks are significant risks and directly <strong>in</strong>fluence <strong>the</strong> Company’s performance and f<strong>in</strong>ancial stand<strong>in</strong>gs. Such risks may <strong>be</strong> <strong>in</strong>curred by a wide variety of reasons, for example, general accidents, tremendous natural disasters <strong>in</strong> all parts of <strong>the</strong> world, with an <strong>in</strong>creas<strong>in</strong>g trend of occurrences and severity, such as fluctuat<strong>in</strong>g climate, melt<strong>in</strong>g polar ice, <strong>in</strong>creas<strong>in</strong>gly violent tropical s<strong>to</strong>rms, as well as floods and earthquakes caus<strong>in</strong>g comprehensive damage. Fur<strong>the</strong>rmore, <strong>the</strong>re have also <strong>be</strong>en risks stemm<strong>in</strong>g from human deeds, like hazards from terrorism and rob<strong>be</strong>ry. Obviously, <strong>the</strong>se risks are regarded as perils caus<strong>in</strong>g damage <strong>to</strong> people’s lives and assets. To m<strong>in</strong>imize such risks, <strong>the</strong> Company has adopted <strong>the</strong> standard consideration procedures for underwrit<strong>in</strong>g, def<strong>in</strong>ed conditions of underwrit<strong>in</strong>g, and determ<strong>in</strong>ed its premiums <strong>in</strong> l<strong>in</strong>e with <strong>the</strong> underwrit<strong>in</strong>g risks. Moreover, <strong>the</strong> Company has supported its employees’ self-development and education, by hav<strong>in</strong>g <strong>the</strong>m attend tra<strong>in</strong><strong>in</strong>g courses both <strong>in</strong>side <strong>the</strong> country and abroad, <strong>to</strong> ensure that <strong>the</strong>y have a good understand<strong>in</strong>g and sound knowledge of <strong>in</strong>surance pr<strong>in</strong>ciples, as well as <strong>the</strong> ability <strong>to</strong> make an assessment of risks with professionalism. Similarly, <strong>the</strong> Company has given consultancy services and suggestions <strong>to</strong> its cus<strong>to</strong>mers <strong>to</strong> help m<strong>in</strong>imize <strong>the</strong>ir risks, <strong>in</strong>clud<strong>in</strong>g adopt<strong>in</strong>g an appropriate re<strong>in</strong>surance policy <strong>to</strong> distribute risks. 15