Singapore Airlines 2014 Annual Report Download - page 48

STATEMENT ON RISK MANAGEMENT
1 SIA Group Enterprise-Wide Risk Management Framework
1.1 Since 2002, a formalised Risk Management Framework has been implemented across SIA 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 SIA’s website1.
2 Highlights Of Significant Risk Management Activities
2.1 Test/Simulation of Risk Responses. During the year under review, Singapore experienced severe haze in June 2013,
reaching hazardous levels and slightly affecting Changi Airport operations. The Group reviewed its contingency
plans to address operational disruptions in the event the haze worsened. Safety and health response plans, such as
distribution of masks, were also implemented to safeguard staff from the effects of the haze. As part of the Group’s
ongoing test/simulation programme, other business continuity plans were also tested and independently verified.
2.2 Review of Crisis Management. The Group reviewed and learned from events in the industry and reinforced its
crisis management procedures and responses. The Group also strengthened the plans following the annual crisis
simulation exercise.
2.3 Review of Enterprise-wide Risk Management Framework. A review of the Group’s Enterprise-wide Risk Management
Framework confirmed the Group’s compliance with the Singapore Code of Corporate Governance (2012). Risk
governance at Board/Board Committee levels was further enhanced with additional reporting arrangements.
2.4 Review of Risks and Risk Controls. Following the Mid-Year and Annual Risk Management Reviews, top risks of the
Group were reported and reviewed at the Group Risk Management Committee and Board Committees. Company Risk
Management Committee, Group Risk Management Committee and Board Safety & Risk Committee carried out reviews
of key risks and the corresponding controls in place. The Group also reviewed its policies and measures to confirm its
compliance with the requirements of the Personal Data Protection Act.
2.5 Assurances of Risk Management Implementation. All Business Unit Heads provided written assurances to the Risk
Committees regarding their implementation of risk management and identification of risks within their respective
Business Units. Corresponding written assurances were provided by Group CEO and by Senior Vice President Finance
to the Board Safety & Risk Committee.
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.
1 http://www.singaporeair.com/pdf/media-centre/riskmanagementframework.pdf
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SINGAPORE AIRLINES