Page 75 - E-BOOK

NPAs, as well as the external environment, such as the competition and the economy, etc; in order to
determine the expected revenue from debt collection and assets sales.
• The Company manages its debtors under the debt restructuring agreement, whereas the Company
reviews debtors’ repayment ability through the Aging system. The system notifies debtors to pay their
debt in advance, in order to prevent the default on payment. Debtors who fail to make the repayment
will be managed with legal proceedings, in order to reduce the risk from debtors that are unable to
follow the debt restructuring agreement.

3. Market risk: market risks come from changes of the market price of collaterals of NPLs and NPAs. The
changes of market prices present the risk to the value of assets, as the market prices fluctuate by the market’s
condition. Market risk causes the Company’s revenue to increase or decrease.

The tool for managing the market risk
The Company reviews the appraisal prices, by applying the BOT Regulation’s for financial institutions,
whereas the Company will review the appraisal price of collaterals of NPLs at every 3 years; and review the appraisal
prices of NPAs at every 1 year, or at any other interval if the situation has significantly changed. The Company also
sets aside the sufficient reserves and the allowance for impairment of assets, in order to cover the potential
damages from the depreciation and the impairment of collaterals of NPLs and NPAs.

(D) Compliance risk 73
Compliance risks comes from the Company’s failure to follow the laws, rules, regulations, standards, provisions,
orders, and guidelines that are enforceable over any business transactions. The compliance risks may lead to financial
loss, prosecution, or damages to the Company’s reputation or image.

The tool for managing the compliance risk
The Company specifies the operational methods and procedures for managing the compliance risk, based
on the standards specified by supervising organizations, professional standards, and the laws. The Company also
seeks the opinions from BOT on its annual operation inspection, in order to stimulate constant improvement of its
operation.

And for this, the Company creates the Compliance Department, with the primary role and responsibility
of reviewing the operation of every department, and making sure that they are complying with the rules, regulations,
orders, articles of association, as well the regulations of the government or supervising authorities. The Compliance
Department collaborate with the supervising authorities, government organizations, external organizations, as well as
internal organization; in order to define the measures, regulations, orders, and operational guidelines that are complying
with the rules and regulations of the government or the supervising authorities, in terms of the anti-money
laundering regulation, anti-terrorism funding regulation, and anti-weapon of mass destruction spreading regulation,
the guideline of the anti-Money Laundering Office (AMLO), the rules and regulations on information technology
supervising, the Personal Data Protection Act, the Cyber Security Act.