Page 96 - BTSGroup ONE REPORT 2021/22_EN

94 l Introduction l Nature of Business l Organisation and Shareholding Structure l Business Review l Corporate Governance l Financial Statements l Other Information l

Risk Management Culture Strategic Risk
The Company focuses on building a strong risk culture at all levels of Thai Economy Risk
the organisation, starting from the Board of Directors and all levels of executives The Company’s financial performance can vary depending upon domestic
as leaders and active proponents of an efficient and consistent risk management demand, relying on the country’s change in economic conditions. Factors that
process, promoting understanding, providing support through training and negatively affect the economic condition include but not limited to – a sluggish
activities to encourage people to apply risk management in their operations growth rate of gross domestic product (GDP), a rising inflation rate and a declining
until it becomes an organisational culture. Risk management coordinators are consumer spending. Such economic conditions may impact the ridership trend
appointed from each business unit to coordinate and report on risk management and fare prices in the mass transit business. In addition, the deceleration in
between the risk owners and the risk management units. economic activities causes companies to reduce their marketing budget to
cope with the volatile revenues dependent upon the economic condition.
Risk management in this approach promotes a culture of risk at all levels These budget reductions trigger headwinds for the advertising industry.
of the organisation as well as rendering a channel for reporting risks to
the Group level, thereby enabling effective risk management. Despite the slowdown in the current economic growth, BTS Group believes
affordable fares and satisfying services are keys to achieve sustainable growth
Risk Factors of BTS Group as indicated based on historical performance of the BTS SkyTrain
The Company clarified the various risk factors of the Groups core businesses Network that maintains robust revenue growth throughout the years among
through analysis based on the type of risk which can be categorised into various challenges.
strategic risk, operational risk, financial risk, legal and regulatory compliance
risk including assessment of environmental, social, community and corporate Business Strategy Risk
governance issues (ESG). The aforementioned risk factors are only some of The Company’s business strategies such as participation in the bidding for
the key risk factors that the Company deemed significant which may have mass transit and infrastructure projects, investment in new mass transit projects,
a substantial impact on the Company and subsidiaries as well as the rights and expansion of the media network – combining an offline with an online media
investment of the Company’s securities holders. However, other risk factors channel, and investment in real estate business, may involve uncertainties
currently unforeseen or deemed insignificant by the Company may in the future and depend on various key factors. These factors include variables relating
have an impact on the Company and its subsidiaries. to changes in economic conditions, politics, competition in the market, laws
and government policies. As a consequence, BTS Group might be unable to