The nature of mobile telecommunication industry in Indonesia requires an extensive and explicit evaluation on risk. Risks surrounding the technology, competition, ethic, regulation and compliance categories are examples of the many risks face by the company. As such, the dynamic of the business environment called for a sound Enterprise Risk Management (ERM) to be one of the pillars of XL’s Corporate Governance.
XL adopts the ISO 31000 framework for its ERM to face the uncertainty. The flexibility and comprehensiveness of the framework allows adequate coverage in assessing, evaluating and managing the risks of the company. The unique integration of risk management process with the internal auditing process in XL means independent assurance on the effectiveness of risk treatment plan can be provided effectively.
The known geological conditions in Indonesia also mean that the business inherits the natural disaster risks and XL has prepared itself to handle any unwanted situation with its Business Continuity Management (BCM). The BCM Committee has been established to guide and govern the implementation of BCM and in XL the key principles of BCM are to focus on the safety of employee and families, service continuity to the customers and minimizing losses of the company.
The services provided to the customers are also dependent on many of key business partners. Hence it is important that XL integrate the company’s BCM to the business partners and ensure a seamless execution should the unwanted occurs. The established BCM includes a comprehensive risk analysis, Business Impact Analysis, Disaster Recovery Plan and Business Continuity Plan.