Serba Dinamik Annual Report 2019

193 KEY ELEMENTS OF RISK MANAGEMENT SYSTEM The Group’s risk management system comprises the following elements: 1 Risk Management Function 2 Group Risk Register 3 Insurance The Risk Management Function is responsible for the development and the implementation of the Risk Management which defined the key principles of risk governance, and the development of risk management practices and tools which enable the continuous identification, measurement, controlling and monitoring of all relevant and material risks of the Group including the identification of emerging risks. In addition, the Risk Management Function is responsible for overall coordination of risk management of the Group by cooperating closely with Risk Focal Person who undertakes monitoring and assessing risks controls in their respective Division, Department & Unit. The Risk Management Function reports directly to the ARC. The Group Risk Register is a permanent agenda of ARC and the Board, for review, deliberation and approval, which consists of the following principal risks: • Strategic Risk • Compliance Risk • Operation Risk • Financial Risk Sufficient insurance coverage and physical safeguards on major assets are in place to ensure the Group’s assets are adequately covered against any mishap that could result in material loss. 3. S TAT E M E N T O F R I S K M A N A G E M E N T & I N T E R N A L C O N T R O L