Page 78 - BAM ONE REPORT 2565 (ENGLISH VERSION)

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(3) Performance
Principl Identifies risks

Principle 11: Assesses severity of risks
Principle 12: Prioritizes risks
Principle 13: Implements risk responses
Bangkok Commercial Asset Management Public Co., Ltd.
Principle 14: Develops portfolio view

(4) Review & revision
Principle 15: Assesses substantial change
Principle 16: Reviews risk and performance
Principle 17: Pursues improvement in enterprise risk management (ERM)

(5) Information, communication & reporting
Principle 18: Leverages information technology
Principle 19: Communicates risk information
Principle 20: Reports on risks, culture and performance

Risk Factors in BAM’s Business Operation
Risks in business operation
1.) Strategic risk
Strategic risks occur from the inappropriately defined strategic plans or from the redesign of the strategic

plan that makes it inconsistent with the organization’s internal and external environment. Such risks may disable the
Company to achieve its goals according to its strategic and operation plans, and may also affect its revenues, financial

position, competitiveness, and capability to sustain its business.
Tools for managing strategic risk
The Company has reviewed and ensured that its annual operation plans suit both internal and external environment.
Strategic risk management starts from the Board of Directors and executives as they are the ones who map the Company’s
business direction, work out the strategic plan based on top executives’ annual risk analysis data covering risk factors
that may affect the Company. In this regard, risk map is used to analyze enterprise risks and key risk indicators are
figured out together with risk appetite and risk tolerance.

2.) Operational risk

Operational risks arise from inadequate corporate governance and internal control, which may be related
to internal operation process, personnel, work system, IT system or external events that affect the Company’s revenues
and financial position, as well as legal risk which may arise from internal operation process that is related to the laws

and prosecution.