to obtain external funding depends on factors, such as operating results, financial status, credit rating of the company, petroleum, and petrochemical industry outlook as well as economic climate and money market conditions, domestic and international, etc. The company may be exposed to liquidity risk unless it continues to find external funding to maintain adequate working capital. IRPC’s risk management approach seeks to ensure adequate capital to fund its business plan. Capital is structured to keep key financial ratios at an optimal level under good corporate governance while the company closely monitors factors affecting or relevant to financing options or its ability to secure funding at reasonable costs. At present, IRPC’s credit lines from financial institutions consist of a short-term loan of Baht 26,505 million for use as working capital, and a credit line of Baht 10,000 million that IRPC can borrow under a loan agreement with PTT, and a credit line of Baht 1,500 million that IRPC can lend to companies within the PTT Group for liquidity management. 4. Capital Projects Risk IRPC stresses the importance of strategic investment projects, taking into account all aspects of risk. Special consideration is given to assessing the risks of new businesses within the company’s appetite framework. In 2023, a landmark project, Ultra Clean Fuel (UCF), is underway to upgrade diesel quality from Euro 4- to Euro 5-standard compliance as required by the government in 2024. There are other potential projects being studied as part of the exploration of investment opportunities for synergy and diversification into new businesses. The company has since developed capital projects risk management as follows: • To establish appropriate supervisory oversight with a view to accelerating investment decision-making on new business opportunities for diversification. • To develop new products that correspond with future demands of the market while getting ready suitable sales channels and ensuring marketability of products to meet those demands. • To provide needed resources, such as personnel, financing, construction sites and utility systems, to support and drive projects to successful completion with a high level of efficiency. • To accelerate the UCF project construction so that it is completed on schedule by putting in place progress tracking system and working together with contractors to solve problems that may arise in a timely manner. 5. People Enable Risk Stepping up preparedness of personnel to live up to IRPC’s core values and developing a modern workforce capable of adapting to change are of utmost importance. The company has implemented a strategic human resource management alongside technology-driven organizational capability development. This is to enable the workforce to develop and enhance corporate values and culture to drive the company toward success in alignment with the new corporate vision and the current and future business direction. The company also strives to develop a workforce with professional integrity that reflects the company’s core values while also recruiting and developing new talents in order to effectively implement its business strategy through the following management approach: • To design and develop an improved corporate culture and cultivate positive employee behaviors that correspond with the new vision in line with today’s Mega Trends through the G3 concept (Good, Great, Growth to Success) as well as reviewing and assessing employee performance on a regular basis. • To improve work processes for enhanced efficiency, introduce digital systems to improve efficiency, speed, and overall business competitiveness. • To develop knowledge management system and add appropriate skills and expertise required to keep pace with the rapidly changing work processes, including new skill sets and knowledge necessary to drive businesses according to corporate strategy. 101 Risk Management 56-1 ONE REPORT 2023
RkJQdWJsaXNoZXIy ODg4NTI=