Page 99 - BTSGroup ONE REPORT 2021/22_EN

BTS Group Holdings Public Company Limited 4.3 Risk Management Review 97
Annual Report 2021/22

mechanical systems. In FY 2014/15, BTSC entered into a new 15-year long-term The Company has not experienced any organised labour unions or collective

maintenance service agreement with Siemens effective from 1 January 2015 work stoppage. However, there is no guarantee that such circumstances will

to 4 December 2029 (the expiration date of the concession agreement). not occur in the future.
According to this new maintenance service agreement, neither party may As such, BTS Group emphasises on the importance of constant management
terminate the agreement prior to the expiration. As such, in the event that and development of employees, by organising training for its personnel and
Siemens were to fail in maintaining the trains of the electrical and mechanical mid-level executives to take part in planning management plans to improve their
system up to par, as specified in the agreement, BTSC would be unable to capabilities, knowledge, and experience. as the Company also provides attractive
terminate the contract. However, BTSC may throughout the contractual term, compensation, welfare, and long-term benefits both monetary and non-monetary
claim mains damages from Siemens under the performance index. As for the forms, including provident fund schemes, employee savings cooperative, and
other 17 trains, 4-car trains purchased from CRRC, they will be maintained and an employee stock option plan, which can reduce the personnel risk in our
repaired by BTSC. Whereas, under the train purchase agreement, CRRC would operations. Moreover, the Company implemented a succession plan in order
be obligated to train BTSC’s employees to manage and maintain the trains’ to prepare the next generation of executives to maintain and improve upon
various systems and carry out an overhaul. the sustainable growth of the company.

At present, BTSC has been using its own employees to maintain part of Reputation Risk
the train system, such as the automatic fare collection, radio communication, and The BTS brand has achieved nationwide recognition, with customer satisfaction
signal transmission system. In addition, to decreasing its reliance on the train surveys indicating positive public perception. However, despite monitoring and
manufacturers, BTSC also implements policies to uplift the capabilities of its analysing customer satisfaction on a regular basis, the business is still exposed
engineering and maintenance units of tools and equipment relating to the train to organisational reputation risk. Should the BTS commuter satisfaction levels
network. decline, the Company’s image and business credibility will be impacted, affecting
its future operations and business prospects.
Personnel Risk
Hiring and retaining employees are challenging and expensive, especially within Therefore, the Company set its business direction according to the principle
the mass transit business and related to data analysis under MIX business as of good governance and firm commitments against fraud and corruption,
the required personnel needs to possess high levels of experience, knowledge, to respect human rights and abide by environmental conservation. BTS Group has
expertise, with specific skill sets. In such circumstances, the Company may always been committed to its business goals, principles, and values which are
have to compete with other business operators to acquire top talent leading based on honesty and responsibility. It aims to balance and create values to
to challenges within its business operations. Consequently, BTS Group has be shared among its businesses as well as emphasising the business operation
to occasionally depend on external or international service providers to fill under sustainable growth that takes into account communities, the environment
the positions where such expertise are required. Therefore, if the Company were and the best interests of all stakeholders.
to fail to prepare and develop its personnel in an adequate and timely manner,
it can affect the Company’s business efficiency and impeding its business goals.