Singapore Airlines 2012 Annual Report Download - page 38

036 SINGAPORE AIRLINES
Statement On Risk Management
BOARD OF DIRECTORS
Board Safety and Risk Committee Group Risk Management Committee
SilkAir Risk Management Committee
SIA Risk Management Committee
SIA Cargo Risk Management Committee
SIAEC Group Risk Management Committee
Other Subsidiary Companies’ Risk
Management Committee or equivalent
1 Risk Management Framework
1.1 In 2002, SIA formalised its Risk Management Framework, encompassing a Governance & Reporting Structure,
a standardised Risk Management Process and a set of risk management Principles, Policies and Guidelines.
2 Governance & Reporting Structure
2.1 Board฀of฀Directors฀- Annually, SIA’s Board of Directors reviews and discusses the strategic and other key risks of
the Group.
2.2 Board฀Committees - The Board’s oversight is supported by the Board Safety and Risk Committee (made up of
independent Board Directors) and other Board Committees that review and ensure that specific top risks are
managed appropriately. The Board Safety and Risk Committee oversees management’s implementation of the
Risk Management Framework and assesses the effectiveness thereof annually.
2.3 Risk Management Committees - The Group Risk Management Committee and various Company Risk Management
Committees drive the implementation of the Risk Management Framework, and through detailed review of
specific risks and corresponding risk controls, ensure that risks are identified and managed, and surfaced for the
Board Committees’ attention.
2.4 Risk Management Function - A dedicated Risk Management Department provides support to the Risk Committees and
to business units, ensuring that risks are surfaced by business units from the bottom up to complement the top-down
perspectives provided by top management and the Risk Committees. Risks are structured under four main categories
– Strategic, Operational, Financial and Regulatory/Compliance – for ease of communication and coordination.