ประจำ ปี 2552 - MCOT

Risk FactorsMCOT Plc. has implemented the Enterprise Risk Management-Integrated Framework, developed byThe Committee of Sponsoring Organizations of the Tread Way Commission (COSO), which is aninternational risk management process, as a risk management tool of the Company. This risk managementprocess is linked with the organization strategies. Risk map, Key Risk Indicator and Risk Appetite areprovided to cover all key risks of the organization, which include the strategic risk, operational risk, financialrisk and compliance risk. Such risk management process comes from top-down brainstorming of the RiskManagement Committee and top executives of MCOT Plc., and bottom-up brainstorming of operatingofficers as well as an analysis of possible circumstances that may occur in 2009 deriving from internal andexternal factors. The extent of risks was assessed as well. The organizational risk management plan forYear 2009 was also prepared to integrate with vision, mission, and strategies of MCOT Plc., which serve 6high risks. The details of each risk and their management categorized by types of risk were summarized below:1. Strategic Risk, comprising 2 main risks:1.1 Risk of technological changesTechnological revolutions and compilation of broadcasting and telecommunicationtechnologies lead to new innovations such as the transition from analog technology to digital technology andwireless communications, which entail unlimited information access and create many new media businesseswith great effects on the mass media business operation at present and in the future. MCOT Plc. has managed this risk by closely monitoring any technological revolutions andprepared itself for such change MCOT Plc. places the technological development guideline and utilizes itsexisting technological infrastructure to generate more business channels. Therefore, a satellite TV and cableTV have been a broadcasting pilot project of MCOT Plc., which may be enlarged as one of its corebusinesses to prevent the loss of business prospect.1.2 Risk of impact caused by lawDue to the Government’s policy of media reform and enactment of the Broadcasting Act on 5March 2008 resulting to a re-allocation of existing frequencies, it is likely that the frequencies currently heldby MCOT Plc. may be reduced. The Company status, subsequently, may be changed from an organizationgranting concession to an operator who has to compete with other private operators. As a result, MCOT Plc.must file applications for business licenses requiring the amount of fees for business licenses and assignedfrequency licenses. An annuity of not more than 2% of revenues directly and indirectly gained fromadvertisements must be contributed to the Broadcasting Development for Public Benefit Fund. Moreover, theAct on the Organizations to Assign Radio Frequency and to Regulate the Broadcasting andTelecommunication Services, which is on the drafting process, may force MCOT Plc. to give a portion of51