Enterprise Risk Management
The Board, thru the Audit Committee, reviews the effectiveness of the Company’s, including its subsidiaries and affiliates, risk management system with emphasis on monitoring of existing and emerging risks as well as risk mitigation measures and on identifying risks before these cause significant trouble for the business. Based on the set guidelines, directors are assigned specific subsidiaries, affiliates or business where they monitor compliance of the risk management system. A review of the risk management system is ongoing as the Company awaits reports from each subsidiary, affiliate and business segment. Criteria used for review are compliance with established guidelines and controls and the appropriateness of risk management and risk mitigation measures taken.
COMPANY
| Risk Exposure | Risk Management Policy | Objective |
| Hazards and natural or other catastrophes | Have an emergency response plan/action | Allow the different business segments to continue operations or minimize downtime during natural disaster or calamity |
| Regulatory developments | Review of new laws and regulations | Ensure the Company is compliant with all laws and regulations |
| Philippine economic/political conditions | Review of business/political situation | Ensure the Company can immediately adapt to changes in economic/political conditions and can devise strategies to meet these changes |
| Liquidity | Minimize exposure to financial markets | Actively secure short-to medium-term cash flow |
GROUP
The Board, thru the Audit Committee, reviews the effectiveness of the Company’s, including its subsidiaries and affiliates, risk management system with emphasis on monitoring of existing and emerging risks as well as risk mitigation measures and on identifying risks before these cause significant trouble for the business. Based on the set guidelines, directors are assigned specific subsidiaries, affiliates or business where they monitor compliance of the risk management system. Criteria used for review are compliance with established guidelines and controls and the appropriateness of risk management and risk mitigation measures taken.
| Risk Exposure | Risk Management Policy | Objective |
| Hazards and natural or other catastrophes | Have an emergency response plan/action | Allow the different business segments to continue operations even during natural disaster or calamity |
| Regulatory developments | Review of new laws and regulations | Ensure the different business segments are compliant with all laws and regulations |
| Money laundering and cheating at gaming areas | Constant security check and monitoring, check and balance system | Minimize situations when these activities can happen |
| Supply of raw materials and packaging materials | Maintain diverse group of suppliers, get at least 3 quotations from suppliers | Prevent overdependence on a single supplier, ensure the best price possible |
| Consumer taste, trends and preferences | Market study and analysis | Be aware of trends and preferences to develop new products or adapt existing strategy |
| Competition | Market study and analysis; Maintain a diversified earnings base; Constant product innovation | Be aware of trends and preferences to develop new products or adapt existing strategy; Revenue and property diversification |
| Interests of joint development partners | Use of pre-selling as a project financing tool; Entering into joint development agreements for the acquisition of land. | Minimize cash outlays for projects, control development costs and maintain a net cash position; Maximize cost efficiencies and resources. |
| Land for future developments | Use of pre-selling as a project financing tool; Entering into joint development agreements for the acquisition of land. | Minimize cash outlays for projects, control development costs and maintain a net cash position; Maximize cost efficiencies and resources. |
| Philippine economic/political conditions | Review of business/political situation | Ensure the different business segments can immediately adapt to changes in economic/political conditions and can devise strategies to meet these changes |
MINORITY SHARE HOLDERS
| Risk to Minority Shareholders |
| The majority shareholder’s voting power in the Company may affect the ability of minority shareholders to influence and determine corporate strategy. |
CONTROL SYSTEM SET UP
COMPANY
| Risk Exposure | Risk Assessment (Monitoring and Measurement Process) |
Risk Management and Control (Structures, Procedures, Actions Taken) |
| Hazards and natural or other catastrophes | Have an emergency response plan/action | Allow the different business segments to continue operations or minimize downtime during natural disaster or calamity |
| Regulatory developments | Review of new laws and regulations | Ensure the Company is compliant with all laws and regulations |
| Philippine economic/political conditions | Review of business/political situation | Ensure the Company can immediately adapt to changes in economic/political conditions and can devise strategies to meet these changes |
| Liquidity | Minimize exposure to financial markets | Actively secure short-to medium-term cash flow |