Singapore Airlines 2008 Annual Report Download - page 39

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Singapore Airlines Annual Report 2007-08
37
1. GROUP-WIDE SYSTEM TO MANAGE RISKS
As part of the overall management and governance structure of Singapore Airlines, a formalised Risk Management
Framework has been put in place since 2002 to assist the Group in identifying, managing and reporting risks. The
standardised processes allow risk management controls to be integrated across companies and business units, and the
structured reporting to Company and Group level Risk Management Committee(s) provide avenues for coordinated efforts.
The risk registers and key risks are reviewed at least twice annually at multiple levels of risk oversight.
2. ENHANCEMENTS TO THE SYSTEM OF MANAGING RISKS
During the year, the Risk Management Framework was further enhanced with the introduction of guidelines to business
units on managing risks to meet corporate risk tolerance limits coordinated at Group Risk Management Committee.
The Group also carried out the modeling of the top operational risks to quantify risk exposures. These models will enable
the Company to quantify these risks on an ongoing basis to monitor and ensure that the risks to the Company’s assets are
appropriately managed.
3. ON-GOING RISK REVIEWS
The Group’s 6th Annual Risk Review was conducted and top risks were surfaced and reviewed at Company and Group Risk
Management Committees before being presented to SIA Board Safety and Risk Committee.
Throughout the year, the top risks and corresponding controls were reviewed at Risk Management Committee meetings.
New risks and gaps identified were reviewed, as were the results of tests and simulation exercises.
A Crisis Simulation Exercise was conducted to familiarise the organisation with processes to manage possible emergency
situations.
4. BOARD OF DIRECTORS COMMENTS ON THE PRACTICE OF RISK MANAGEMENT IN SINGAPORE AIRLINES
Having reviewed the risk management practices and activities of Singapore Airlines, the Board of Directors has not found
anything to suggest that risks are not being satisfactorily managed.
STATEMENT ON RISK MANAGEMENT