Singapore Airlines 2012 Annual Report Download - page 39

037ANNUAL REPORT 2011/2012
Statement On Risk Management
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3 Risk Management Process
3.1 Structured Process - Within the Risk Management Framework, a simplified 5-step Risk Management Process is
adopted to allow easier communication, understanding and application by all levels of staff. The five steps – to
Identify, Evaluate, Prioritise, Reduce and Review risks – form a re-iterative flow of activities depicted as follows:
3.2 Multi-pronged Strategies - Within this process, multi-pronged Risk Reduction strategies such as Risk Prevention,
Risk Mitigation and Risk Transfer are employed to address the risks. Wherever possible, preventive measures are
adopted and complemented with Crisis Management, Business Continuity and Disaster Recovery plans that are
coordinated and integrated into a seamless risk response effort. Risk policies, guidelines and tolerance limits are
incorporated into the process to ensure adequacy and effectiveness of risk responses.
3.3 Embedded Activity - Twice each year, all business units carry out a Group-wide risk review to ensure that risk
registers are kept current and risk controls are improved and up-to-date. These processes are embedded within
the work schedules of the business units, and driven by the quarterly risk review activities of the Risk Committees.
4 Principles, Policies And Guidelines
4.1 Governing Philosophy - A set of Risk Management Principles adapted from ISO 31000 provide the underlying
basis for the scope and objectives of the risk management effort, complementing the overarching philosophy
provided by the Risk Management Policy Statement as follows:
“SIA is to be a risk-aware organisation such that the taking of risks necessary for the achievement of its
corporate objectives is carried out knowingly, and risks that represent a threat to SIA are managed so as to
protect and enhance the value of the organisation in the interests of shareholders and stakeholders of SIA.”
4.2 Controls and Limits - Written guidelines on managing specific types of risks provide the control boundaries and
performance standards for business units to comply with in managing risks. All risk responses are required to
be tested where practicable, to ensure that they are adequate to manage the risks identified, and effective in
reducing the risks to within tolerance limits or better.
SIA 5-Step Risk Management Process