Annual Report 2010-2011 - Colombo Stock Exchange

Risk Management
Risk Exposure Group Objectives Risk Minimization Strategies
2. Asset Risk • To minimize risk from fire, theft
and machinery and equipment
breakdown.
3. Internal Controls • To maintain a sound system
of internal control to safeguard
shareholders’ wealth and Group
assets.
4. Reputation Risk • To prevent the causes that damage
our reputation.
• To minimize the impact if, despite
our best endeavors, a reputation
crisis should occur.
5. Human Capital and
Labour Risk
• To ensure a smooth flow of
operations without any undue
disruptions.
• To project our self as a human
employer, successful in motivating,
developing, retaining and attracting
the best of human capital.
6. Technological Risk • To keep pace with the current
technological developments and
safeguard against obsolescence
• Obtaining comprehensive insurance covers for all
tangible assets.
• Adoption of stringent procedures with regards to the
moving of assets from one location to another.
• Carrying out mandatory preventive maintenance
programs.
• Carrying out frequent employee training programs in
areas such as fire prevention.
• Carrying out of system audits and other control
mechanisms such as inventory and cash counts
throughout the Group by our central Internal Audit
Department.
• Having in place a budgetary process and a budgetary
control mechanism on a monthly basis to ensure that
the Group’s performance is in line with its targets.
• Adopting stringent quality assurance policies with
regard to goods bought out from third parties as well
as the inputs, processes and outputs of own brand
and in-house manufactured products.
• Ensuring effective communication with various
stakeholders including employees, bankers, media,
regulators, customers, suppliers, shareholders and
the community at large.
• Providing the front line managers and the sales
staff with adequate training in order to improve
service standards as well as to educate staff on the
importance of customer service.
• Maintaining healthy relationships with trade unions
through regular dialogue.
• Entering into collective agreements with trade unions.
• Improving employee benefits by way of financial
incentives and welfare activities.
• Improving the Human Resource function of the Group
with regards to employee recruitment, performance
appraisals and in-house as well as external training
programs.
• Continuous investment in new machines.
• Investing in Research and Development activities
throughout the year.
• Investing in hardware and developing software inhouse.
• Continuous improvement on safeguarding IT and
related assets.
Richard Pieris and Company PLC | Annual Report 2010/2011 42