Enterprise Risk Management
Arig recognizes the importance of a prudent risk management framework that comprehensively addresses the need to manage the risks across the Company. Albeit those processes of risk management that are being carried out by relevant functional units in silos, i.e. within the functional areas, the Board is committed to steer the Company into the arena of Enterprise Risk Management (ERM).
The Board holds the responsibility of overall risk management of the Company and authorized the CEO to formulate, review and implement a structured ERM framework. Arig has formed an independent standing committee for ERM under the direct supervision of the CEO with the following mandate::
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identification of various risks that may have an impact on Company’s business and objectives;
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assessment of risk exposures and opportunities;
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enterprise-wide decision process regarding risk appetite, mitigation, control and management of risks;
assessment and effective use of economic capital.