To mitigate impacts, IRPC has undertaken the following risk management approach: • Closely monitored and analyzed events that may impact crude oil price movements as well as conducted price projections, and reported to the management to keep them informed on a regular basis, or called an urgent meeting as needed to ensure effective and timely response. • Procured new crude oil types as feedstock for production to cushion against impact of price volatility on production cost as well as prevent refining capacity loss due to crude oil supply disruption. • Managed inventories of crude oil, petroleum, and petrochemical products at optimal levels to prevent impact from stock loss. • Entered derivative contracts with set targets on price, volume, and period for risk management that were appropriate for and consistent with IRPC’s business plan under the supervision of the Supply Chain and Hedging Committee, and the Risk Management Committee. 2. Operational Risk IRPC did not compromise on employees, personnel and stakeholders’ life, safety, and wellbeing or the need to prevent serious environmental impacts. The company has thus implemented operational risk management encompassing the production and auxiliary processes that have a great bearing on all stakeholders, such as loss of production. Such risk management consists of risks to the life and safety of employees within the company’s premises, risks to the environment and community, risks to integrity of equipment, and water management risks, etc. The company’s approach to operational risk management is as follows: • Reduced risk of accidents in the workplace that could result in loss of life or property damage and the corporate image or operating results. IRPC has consistently promoted a culture of safety and safety awareness through the Strengthen Safety campaign, consisting of activities to enhance communication, deliver safety messages, build safety knowledge and understanding along with strict enforcement of safety regulations. Other safety awareness campaigns included safety management during UCF project construction by creating awareness among workers, such as Safety Excellence 2023 3+, Safety Walk & Talk, and introduction of Process Safety Management and Incident Management System (idMS) to analyze the root causes of incidents in order to develop optimal safety solutions. • Minimized integrity of equipment risk, underscoring the importance of enhancing Plant Availability and Plant Reliability to prevent Unplanned Shutdown that may affect product delivery to customers as well as to bolster safety, environmental protection, confidence of the communities, and public trust. The Zero Unplanned Shutdown project seeks to improve three aspects of integrity of equipment through: Design Integrity, Proactive & Reactive maintenance, and Operational Integrity. • Controlled environmental risks arising from the emission of volatile hydrocarbons from the production process, which may adversely affect the health of workers and communities around the production complex. IRPC has established guidelines to reduce environmental risks by imposing enterprise-wide environmental management under ISO 14001 Environmental Management System, ISO 50001 Energy Management System, along with strict compliance with the current laws and regulations as well as relevant standards. This includes monitoring and measurement around the production plants and implementing communication campaign and contingency plans during planned maintenance. In addition, the company has invested in upgrading diesel product quality to meet Euro 5 emission standard through the UCF project, which will help reduce the amount of PM 2.5 and airborne carcinogens in the atmosphere that are harmful to public health and the environment. 99 Risk Management 56-1 ONE REPORT 2023
RkJQdWJsaXNoZXIy ODg4NTI=