ENTERPRISE RISK MANAGEMENT
Management of Legal and Regulatory Risk
The management of Legal and Regulatory Risk aims to ensure that the Group’s exposure to potential legal liabilities during the course of business such as rule implementation or product liability are well mitigated to avoid disruption to its business and operations. If not properly mitigated, legal liabilities can have a significant impact on the Group’s reputation which in turn can affect investor confidence in the market. In this regard, the Legal and Regulatory Risk unit monitors for any new or on-going litigation cases to assess the potential adverse impact of these cases to the market, the Group’s reputation and financial standing. One of the contributory factors to the Group’s potential exposure to legal liabilities is the terms and conditions contained in the contracts. The Legal and Regulatory Risk unit reviews contracts from time to time to ensure consistency of terms and conditions across contractual agreements.
Another key area that Legal and Regulatory Risk unit monitors is the dynamic regulatory landscape which has been getting increasingly complex and costly to comply. With the fast pace of regulatory changes, there is the ever present risk that the Group may breach new regulations and face reprimands or hefty fines from regulators. Thus, it is important for the Legal and Regulatory Risk unit to keep abreast of new regulations and assess their potential implications on the business operations of the Group.
The Group will continue to review and enhance the above processes and procedures in accordance with global best practices and standards to ensure that the risk management framework remains relevant and applicable in the current market environment.