• Prevented risk of community or public grievances arising from the company’s operations. In the past year, IRPC implemented planned maintenance, and construction of the Ultra Clean Fuel (UCF) project that included activities that could lead to complaints, litigation or disputes with surrounding communities or even public protest. The company has consistently taken proactive measures, including public communication, information dissemination to promote mutual understanding and build good relationship with communities surrounding its production complex. In addition, the company has made positive contribution to the society by operating its businesses with a high level of corporate social responsibility. • Mitigated risks associated with water management to ensure sufficient supply for water production and consumption according to the water management plan of the company’s industrial zone. The company also stepped up preparedness for possible drought and finding additional water supply to accommodate new projects and future growth. In 2023, the company has closely monitored water consumption, developed contingency plan in the event of water shortage, conducted maintenance on water pipes from the filtration plant to the industrial zone as well as improving eff iciency in water production and consumption through Reduce, Reuse, Recycle (3Rs) to reduce the volume of water drawn from natural sources. • Prevented risk of business disruption and built confidence among all stakeholders by developing a risk management system that meets the ISO 22301:2019 Business Continuity Management System to mitigate impact from threats to business continuity, such as natural disasters, cyberattacks, fire hazards, etc., that could otherwise cause serious business disruption. In the past year, the company conducted a business continuity drill under a cyberattack scenario that may cause disruption in production control. • Managed the company’s reputational risk by issuing guidelines on effective external communication in time of crisis, particularly on issues that may impact its public perception and reputation. Such risk management seeks to reduce public anxiety and inspire confidence among shareholders and investors. The company has issued rules and regulations on public disclosure of the company’s information, complete with handbook and guidel ines as wel l as developing cr isis communication scenarios as part of business continuity drill. 3. Financial Risk • Foreign Currency Exchange Risk The exchange rate volatility of the Baht against the USD directly and indirectly affected IRPC’s revenue and expenditure to a considerable extent. The company’s petroleum and petrochemical products as well as procurement of feedstocks, mainly crude oil, are settled in Baht while still being tied to USD-linked world market prices. The same is true for project loans. IRPC has adopted a risk management approach using natural hedge techniques to mitigate risks associated with exchange rate fluctuation by structuring its foreign currency-denominated loans and debentures proportional to income in foreign currencies. This risk management activity comes under the oversight, approval, and monitoring of the Risk Management Committee to ensure it conforms to the risk management policy and stays within the company’s risk appetite. The company also engages in FX Swap and FX Forward to reduce its exchange rate risk exposure associated with having export revenue in USD and USD-denominated expenditure on feedstocks. • Funding & Liquidity Risk IRPC has developed a capital spending plan for ongoing business expansion and thus incurred interest payment and repayment burden on loans and maturing debentures. The company needs to secure adequate capital to meet the obligations at a reasonable cost of funds. The ability 100 Risk Management IRPC Public Company Limited
RkJQdWJsaXNoZXIy ODg4NTI=