Harum Energy places risk management as a priority to address any uncertainty arising from internal and external factors in order to achieve optimal balance in its operations

As part of Harum Energy’s policy, management periodically identify, review, and prioritize the management of such risks. As the emergence of risks can impact the performance of and hinderHarum Energy from achieving its target, hence a risk management framework that comprehensively covers all risks identified as potential risks faced by Harum Energy and its subsidiaries become important.

Harum Energy also implements risk management strategies by considering risk management aspects that are targeted for the purposes of improving and adding control and mitigation planning that are more thorough to provide assurance to all stakeholders that Harum Energy is capable of managing risks properly.

Evaluation on Effectiveness of Risk Management System

Harum Energy’s risk management system is periodically evaluated by referring to the following principles:

1. Ensure a clear reporting path and segregation of function from the operational work unit to the work unit performing the control function;
2. Ensure the design of any system and procedure has considered the operational and business aspects as well as the possible risk level in a work unit; and
3. Manage an information system to make available information and analysis that are accurate in a timely manner to the management in order to anticipate and face any changes in market condition;
4. Ensure that the Internal Audit has performed an independent and objective review of the Company’s operational procedures and activities on a regular basis. Result of limited analysis by the Internal Audit unit is to be delivered in the form of Internal Audit Report to the Board of Directors.