Risk Management Policy
In implementing risk management, PT Woori Finance Indonesia Tbk refers to the Regulation of the Financial Services Authority of the Republic of Indonesia Number 44/POJK.05/2020 concerning the Implementation of Risk Management for Financial Services Institutions.

Strategic risk is the risk arising from inaccurate decision making and/or implementation of a 1. Strategic decision, as well as failure to anticipate changes in the business environment. This risk is highly dependent on the skills of the Board of Directors and the Board of Commissioners, as well as adequate Risk Management policies and procedures, which include the process of identification, measurement, control, risk monitoring, support for the Risk Management information system and a comprehensive internal control system.

2. Operational risks arise due to inadequacy and/ or malfunction of internal processes, human errors, system failures, and/or external factor events.

3. Credit risk arises due to the failure of other parties to fulfill obligations to PT Woori Finance Indonesia Tbk. The quality of the Company's collectability has always been the focus of the management, which is closely monitored by the internal control and internal audit functions. PT Woori Finance Indonesia Tbk anticipates this risk by always strictly managing and evaluating the credit financing structure, consumer feasibility, and receivables. The prudential principles adopted are reflected in the “Know Your Customer” program that has been long implemented to better identify consumers to be given financing facilities.

4. Market risk is the risk faced in the position of assets, liabilities, equity, and/or off balance sheet accounts, including derivative transactions due to changes in the overall market conditions

5. Liquidity risk is the risk arising from a company's inability to meet maturing liabilities with cash flow funding sources and/or any liquid asset that can be easily converted into cash, without disrupting the Company's activities and financial condition.

6. Legal risks arise due to lawsuits and/or weaknesses in legal aspects. PT Woori Finance Indonesia Tbk always anticipates compliance risks related to all applicable laws, legislation, regulations and policies by establishing strict standards in each of its business processes that are prone to compliance risks, implementing the GCG principles, and referring to clear Standard Operating Procedures (SOP) in all of its business activities. In addition, PT Woori Finance Indonesia Tbk always carries out the monitoring and evaluating functions over its implementation. Therefore, PT Woori Finance Indonesia Tbk has never faced significant legal risks so far.

7. Compliance risk is the risk that arises because a company does not comply with and/or does not implement the prevailing laws and regulations. Compliance with all regulations and provisions related to the Company's business has always been PT Woori Finance Indonesia Tbk’s priority in running its business and is actively monitored by various organs within the Company, especially direct supervision by the Board of Directors and management at each level.

8. Reputation risk is a risk that arises as a result of stakeholders’ declining trust derived from negative perceptions of the Company. PT Woori Finance Indonesia Tbk always maintains the integrity of the Company in various aspects of its business, be it from the level of compliance, business health, and every business activity it carries out.
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