Risk Management is an important cornerstone of CAO's businesses. CAO has built a strong and effective foundation of risk management infrastructure, having continued to reinforce our risk management culture through our business philosophy of “Compliance as a Top Priority, Risk Management as Utmost Importance”.
Four-Tier Management Control Infrastructure
The Group’s four-tier management and control structure is designed to ensure sound governance and oversight over the execution of effective risk management practices for the Group.
At the management and control level, the Company Risk Meeting (“CRM”) plans and implements risk management controls over risk exposures such as market, credit, operational, enterprise, compliance and reputational risks. The CRM operates within the delegated authority set at the RMC level. The CRM is chaired by the Head of Risk Management, who reports to the CEO but has an independent direct reporting line to the RMC.
At the operation level, the Risk Management Department ensures that risk management activities are executed daily and that all risk-related policies, processes and limits are implemented and adhered to. Over the past years, the risk team has defined and built the framework around risk management, identifying, reporting and monitoring the risk profiles of the Group’s supply and trading businesses in Singapore, Hong Kong SAR, Los Angeles and London. The Group’s global risk team, with professional credentials such as Financial Risk Manager (FRM) by Global Association of Risk Professionals (GARP) and their expertise in credit, market and enterprise risk management, manages and supports appropriate risk management practices in daily operations across the globe.