Report of the Risk Management Committee

Board of Directors of Major Cineplex Public Company Limited resolves to appoint Risk Management Committee (RMC) to determine directions and supervise risk management of the Company in accordance with international standard mechanism and process, and to ensure that they are in the same direction with the Company’s work operation policy and consistent with sustainable development and growth.

Risk Management Committee comprises independent director and directors of the Company who have expertise as well as comprehension in business operation and risk management. Currently, there are 3 risk management directors, namely:

  1. Dr. Satian Pooprasert Independent Director Chairman, Risk Management Committee
  2. Mr. Veerawat Ongvisith Director Risk Management Director
  3. Ms. Chonticha Chitrarporn Director Risk Management Director

The scope of operation of Risk Management Committee was determined in accordance with Charter of Risk Management Committee. In 2021 Risk Management Committee held a total of 4 meetings participated by all directors, which constituted a quorum. Essence of their performance could be summarized as follows.

  1. Risk management supervision and monitoring at 2 levels as follows ;
    • Strategic Risk Management
    • Operational risk Management
    Determination to appoint risk management working group at strategic and operation levels to enable thorough operation in accordance with international standards, with clear steps of operation mechanism consistent with and in the same direction as the Company policies and the Enterprise Risk Management.
  2. Key Risk Monitoring in accordance with current situations affected by the Company. The scope thereof covers:

    • Strategic Risk
      Impacts of COVID-19 pandemic spread led to deceleration in the movie industry preventing popular foreign movies from screening on schedule, and eventually theater services were closed down temporarily.

      The Company expeditiously produced Thai movies with sweeping contents to respond to different requirements of customer groups of all ages, created concessions delivery on all sale channels, developed new businesses, e.g. merchandising, distributing Major Brand products to convenience stores and department stores, extending to digital agency business, acting as advertising media distributing agent through all digital platform channels, both domestic and overseas. Apart from the foregoing, the Company implemented continuous cost control measure to maintain liquidity and cash flow by controlling operation costs.

    • Operational Risk
      The Company strongly and continuously implemented measure preventing spread of COVID-19 in accordance with standard of Ministry of Public Health, Department of Disease Control, including notifications/orders of the Centre for COVID-19 Situation Administration (CCSA), i.e. New Normal, Social Distancing, ATK testing for staffs, RT-PCR testing to ascertain the results, Work from Home, deliveries of COVID-19 preventive equipment to staffs regularly on monthly basis.

      In respect of safety, the Company implemented measure to prevent incidents and accidents which would affect the business and all parties concerned. The Company gravely emphasized on fire prevention, with thorough work plan and practices, i.e. fire prevention plan, where experts were employed to examine, evaluate and test the control and prevention system including fire prevention equipment and instruments, examinations and improvements of electrical equipment, electrical control system and various areas to ensure proper condition and safety thereof in accordance with the work plan, taking insurances in such amounts covering the damage, and review of the insurance amounts regularly on annual basis, next was fire-fighting plan, with trainings organized by experts to staffs of the Company and annual fire drill, and lastly, post-fire rehabilitation plan for trade center/theater, etc., to ensure that the Company would be able to fully carry out all measures in case of fire.

      For political conflicts within theaters, the Company provided information to customers on personal rights, creation of mutual understanding. For conflictions on social media, the Company established Social Media Committee to supervise and monitor making of risky, directing opinions, arousing conflicts, analyze violence and undertake control measure.

    • Financial Risk
      With increasing expenses the Company undertook concise measures, controlled expenses of the entire Company, but still fully maintained qualities and all standards, organization restructuring, proper resource utilization planning, new investments, including fund reservations to maintain the Company’s liquidity on continuous basis.

    • Compliance Risk
      In respect of laws, policies and strict orders of government agencies, the Company fully met all requirements regarding business operation licenses, renewing existing licenses and applying for new ones, strictly, regularly and continuously complying with COVID-19 spread prevention measures as per orders of Ministry of Public Health, Department of Disease Control and (CCSA), and also complying with Personal data Protection Act B.E. 2562 (PDPA).

    • Information Technology Risk (IT Risk)
      With transition to Digital Disruption the Company implemented various measures to mitigate damages which could occur in respect of IT, i.e. trainings to educate staffs on Cyber-attack & cyber security, updating the system to prevent attacks from outside, e.g. Anti-Virus programs and Firewall, on regular basis, standardizing various IT equipment and tools, system penetration testing to identify IT system gaps, information prioritizing and backup on main server/backup server on regular basis, and practices to deal with possible force majeure.

    • Corruption Risk
      With a goal to become an organization with sustainable development and growth, the Company’s operation was divided into a number of aspects, i.e. environmental aspect, where the Company carried out Green Cinema Project with several activities promoting and attending to environmental aspect; social aspect, with internal activities supporting and taking care of staffs, external activities with community social assistance and return, work operation taking care of all customers, trade partners and stakeholders of all groups; good corporate governance, where the Company emphasized on corruption-free work operation, improving and revising work operation steps and practices and executing of written documents for ready implementation by staffs to prevent corruptions.

      Moreover, risk mitigation measure was implemented, in both forms of preventive action and corrective action, with proper coverage to enable various measures to be enhanced efficiently on continuous basis.
  3. Consider risk assessment on both sides, i.e. likelihood and impact of each risk to identify the risk level, with proper principles and adequate supporting information for risk assessment, which would reflect facts of key risks emphasized and monitored by the Company, to ensure proper and most efficient management.
  4. Consider risk management operation in accordance with international mechanism and standard, starting from current risk monitoring and identification of new risks, risk assessment, determination of risk management measure and monitoring for risk reporting, by compiling risk information in the form of risk registration including preparation of risk management handbook at operational level requiring determination of work plan and clear operational steps which could be readily implemented.

In view of the foregoing operations of the Company on risk management, the Company was confident that it could fully achieve all established targets of business operation to maintain and create optimal benefits to all shareholders and stakeholders of all groups.

Dr. Satian Pooprasert

Chairman of the Risk Management Committee