Management Approach
We have documented policies and internal controls to reasonably ensure that we are able to manage process level risks. In addition, at an enterprise and project levels, we have adopted the following management approach:
Board Committees. The establishment and maintenance of the various Board Committees is an integral part of our risk management. The Board of Directors created several committees to assist in managing and mitigating the risks surrounding Converge. These bodies are also deeply involved in the overall governance matters of the company. These include the Board Risk Oversight Committee, the Audit and Related Party Transactions Committee, the Corporate Governance Committee, the Remuneration Committee, and the Executive Committee.
The Board Risk Oversight Committee oversees (i) the Company’s Enterprise Risk Management system, including risks originating from subsidiaries, affiliates and investments and to ensure the functionality and effectiveness of said system; and (ii) the sustainability framework and periodic review of the said framework to ensure that it remains appropriate in light of material changes to the Company’s size, complexity and business strategy, as well as its business and regulatory environment.
The Audit and Related Party Transactions Committee is responsible for enhancing the Board’s oversight capability over the financial reporting, internal control system, internal and external audit processes, and compliance with applicable laws and regulations of Converge, and the Corporation’s Code of Conduct. It also reviews and evaluates related party transactions to enhance corporate transparency and promote fair transactions.
The ERM Program
The ERM framework based on ISO 31000:2018 has been adopted and provides the foundation for Converge’s management of risks through the ERM Program. It is anchored on the mandate and commitment from the Board of Directors and top management to implement the ERM process across the organization. It is envisioned to be dynamic and shall be continuously improved to be responsive to the needs of the organization and attain Converge’s desired state. Converge has also adopted the ERM process defined in ISO 31000:2018 in managing risks. At each stage of the risk management process, tools and techniques that are suited to the Company’s objectives, resources and capabilities shall be employed.
Through the ERM Program, we shall embed risk awareness within our company culture and effectively communicate to the Board and Management the risks that Converge could potentially face. We also look into ESG-related risks and assess how these could be incorporated into our ERM framework and eventually formalized in our applicable business processes, metrics and targets.
The Chief Executive Officer (CEO) is the comprehensive risk executive and is ultimately responsible for managing key risks, setting ERM priorities tolerances, and policies, and the development, execution, and monitoring of risk management strategies. The CEO provides direction on the design and implementation of appropriate systems, tools, and methodologies to support ERM processes and other risk management activities.