#GRCGood&Cautious: Working Principles of PTTEP EP.2

          In the previous article titled “#GRC Good&Cautious: Working Principles of PTTEP EP.1” discussed the overview of GRC operations of PTTEP. It started with GRC, which is one of the SD Framework key elements, including setting the important goals and strategies of GRC to serve as a framework for PTTEP's GRC operations. To provide a clearer picture, in this article we would like to bring you to explore GRC operations in the past 2-3 years, including the roles and responsibilities of the Board of Directors and how important they are to build GRC into a strong corporate culture and to be able to achieve long-term goals.   

PTTEP set important goals for GRC, which can be divided into 2 parts: 1) raising the GRC Maturity Level to the highest level and 2) being a model organization in GRC in Thai listed companies. PTTEP has also prepared a GRC Roadmap which has been approved by the Board of Directors with the key focus of the operation in 3 components: process & technology, people, and society. Each one has a different action plan, as detailed below.

1.    Process & Technology: increasing effectiveness by applying digital technology in our working processes.

§  Reviewed possibility to integrate activities and working processes of assurance functions, so that they are aligned with no redundancy and completeness.

§  Enhanced our Risk Management System which covers suggesting risks, searching risk information and linking risk reporting to other assurance reports with the aim of achieving no unidentified high-impact risks (no surprise risks), expected to be completed in 2022.

§  Developed GRC One Digital System, which is a system collecting related GRC data reporting to enhance the efficiency of data reporting through technology assistance. This allows management and related employees to receive information of GRC when the time is right and helps support important decision-making.

2.    People: building GRC culture

§   Encouraged everyone to apply GRC principles in all operation areas, both in Thailand and other countries, by conducting an Internal Maturity Assessment for Malaysia Assets. The results will help formulate an improvement plan to increase effectiveness in terms of GRC.

§  Continuously built a GRC culture within the organization through communication channels and activities in order to increase GRC awareness and understanding resulting in an increased ability to apply GRC in our daily work. All communications are conducted under the easy-to-remember message “GRC Good and Cautious”.

3.    Society: promoting GRC to society

§  Disclosed GRC activities in operations efficiently through communication channels, for example, Explorer’s Journal and the PTTEP website.

§  Conducted a Stakeholders Engagement Survey and used the results to develop an improvement plan in order to serve our target of becoming a GRC role model among Thai Listed Companies.

§  Besides internal communications, PTTEP also encouraged related parties, for example, vendors and joint ventures, to operate their work under our GRC principles. For instance, we encouraged vendors to learn, understand and acknowledge the Good Corporate Governance and Business Ethics (CG&BE) of PTTEP via a PTTEP Vendor Sustainable Code of Conduct. Moreover, they have been invited to participate in anti-corruption e-learning and testing. In terms of joint ventures, PTTEP delivered a letter to inform all concerned about PTTEP CG&BE principles, so that they could acknowledge and comply with them.

The Roles of the Board of Directors in Driving GRC

The Board of Directors plays an important role in encouraging and supervising PTTEP's GRC operations. Examples of the Board of Directors’ roles in GRC are as follows:

·       Approved the Sustainable Development Framework by setting GRC as one of the key components, which GRC reflects as a "Being Good" in business operations.

·       Approved the GRC Roadmap, which is the framework of GRC operations to ensure that it will be able to achieve the defined goals of GRC.

·       Supervised and monitored GRC operations including providing recommendations through the Corporate Governance and Sustainability Committee and the Risk Management Committee. Examples of activities were reported to the committee, such as GRC One Digital System development, the results of the GRC Maturity Assessment and the Stakeholders Engagement Survey, as well as the progress in closing the gap from the above assessments.

·       Arranged for a Board of Directors update on new GRC knowledge, such as Strategic Risk Management, learning from the World Economic Forum, and a summary of operational situations to prepare for compliance with the Personal Data Protection Act B.E. 2019 (PDPA), etc.

PTTEP has intensive and continuous operations on GRC with clearly defined and measurable strategies and goals which become framework of GRC operations. The GRC operations include placing the importance on building GRC as a corporate culture, applying technology to work and encouraging the GRC principles to the outside community under the supervision and advice of executives and the Board of Directors. All the processes are to ensure that PTTEP can achieve its defined goals. We believe that if PTTEP operates well and cautiously with a strong foundation, including considering the mutual benefits of stakeholders, PTTEP will eventually be able to deliver value and create sustainability for society (From We to World).