Risk management
Our group operates a diverse business which includes tobacco, pharmaceutical and processed food. We also operate on a global basis with offices in Europe, CIS, Africa, or the Middle East, among others. Due to this diversity and as we operate in changing business environment, we are exposed to various risks.
We look at emerging risk such as increase in cyber/IT security risk, risk of natural disasters arising from climate change or increase in political risk. We examine financial and business risks such as effect of currency fluctuation or impact of regulatory developments. Our approach to addressing key risks is detailed in our latest annual report under 'Risk Factors'. We also address compliance risk as we strive to ensure all of our business operations are carried out with integrity.
Our key financial and business risks are considered by the Board of Directors on a quarterly basis. Internal audits are carried out by a division independent of the business, which reports directly to the Group President. We have a crisis management and disaster response protocol, whereby a project team, headed by the Group President, can be swiftly called upon in times of crisis or disaster.
We recognize the need for a Group-wide global risk management framework: this would allow us to be conscious of, and appropriately deal with, more complex, wide-ranging risk factors. We are establishing more systematic ways to analyze and respond to risk factors surrounding our Group and our stakeholders, with a view to further strengthening our risk governance.