ENTERPRISE RISK MANAGEMENT
DMW adopts the COSO Enterprise Risk Management – Integrating with Strategy and Performance as a framework in implementing the Company’s ERM process. This framework builds on the current level of risk management that exists in the normal course of business and demonstrates how integrating enterprise risk management practices throughout the Company will help accelerate growth and enhance performance.
Identifying Risk. The Company identifies the internal and external risks that impact the performance of strategy and business objectives. When identifying the risks, the Company also considers the environmental, social, and governance (ESG)-related factors that could affect the Company’s ability to achieve its strategy or objectives. The identification process may include surveys, workshops and interviews with risk owners and executives to confirm existing risks or understand new or emerging risks.
Assessing and Prioritizing Risk. After the identification of risks, the Company assesses the impact and likelihood of each risk using a defined impact criteria and likelihood criteria. Once the risks are assessed, DMW determines the “top 10 risks” of the company using a 25-box Risk Heat Map to depict the prioritization of its most critical risks according to the impact and likelihood. Risk assessment shall be done continuously and throughout the Company.
Responding to Risk. Once the “top 10 risks” are identified, The Company selects and deploys an appropriate risk response, which may be to avoid, transfer, reduce, accept, or exploit the risk.
Monitoring the Risk. The Company continuously monitors the risks and effectiveness of the implementation of the strategies and action plans, as well as the effectiveness of the Company’s ERM framework. As the ERM process is not a one-time or static activity, the Company assesses the effectiveness of the ERM process through regular feedback and assessment with the management and other stakeholders.
DMW’s Enterprise Risk Management (ERM) Manual may be accessed below: