Singapore Airlines 2013 Annual Report Download - page 40

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SINGAPORE AIRLINES
1 SIA Group Enterprise-Wide Risk Management Framework
1.1 Since 2002, a formalised Risk Management Framework has been implemented across the Group under which
risks are identified, evaluated and controlled on a coordinated and integrated basis. Details of the key elements
of this Framework can be found on singaporeair.com.
2 Highlights of Significant Risk Management Activities
2.1 Operational changes. During the year under review, the core proprietary-owned IT System used for reservations
was upgraded to a new community-based reservations platform hosted by an external provider that is concurrently
used by multiple airlines. SIA business units put in place and tested contingency plans to address various risks
that had the potential to affect the success of the cutover project.
2.2 New global risk. In view of the emergence of a novel corona virus, the Group refreshed its Pandemic Response
Plan and ensured that it is updated.
2.3 New legislation. In addition to monitoring ongoing compliance with existing laws and regulations, the Group
initiated risk reviews to ensure compliance with new legislation enacted in Singapore relating to Personal Data
Protection, which is expected to come into force in 2014.
2.4 Test/Simulation Programme for Ongoing Risk Responses. As part of the Group’s ongoing test/simulation
programme, a Crisis Management Exercise was carried out to test responses and capability to manage a crisis
event occurring overseas. In addition, the alternate site for a core control centre was activated and used,
demonstrating its readiness in functionality. Other tests of business continuity plans were also conducted and
independently verified.
2.5 Reviews and Assurances of Risk Management Implementation. Pursuant to the Group’s Annual Risk Management
Review, significant and key risks were reported and reviewed at various levels, including at Board Committee
levels. Company and Group Risk Management Committee(s) carried out reviews of key risks identified and the
corresponding controls that were put in place. Written assurances regarding implementation of risk management
were provided by Business Unit Heads to the Risk Committees, and Group CEO and Senior Vice President Finance
provided corresponding written assurances to the Board Safety & Risk Committee.
2.6 Risk Governance/Oversight. As part of the Board’s risk governance responsibilities, the Board Safety & Risk
Committee performed risk oversight reviews to ensure there was evidence that the risk management system was
in place and effective, and also carried out reviews of specific significant risks and controls.
3 Board of Directors’ Comments on the Practice of Risk Management In Singapore Airlines
3.1 Having reviewed the risk management practices and activities of Singapore Airlines, the Board of Directors has
not found anything to suggest that risks, which the Group considers relevant and material to its operations, are
not being satisfactorily managed.
STATEMENT ON RISK MANAGEMENT