O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT 44 Risk Governance Thai AirAsia’s risk governance is a part of the management of the entire organisation to ensure that risk management is a priority when performing its duties and governance structure including duties and responsibilities to promote the effective risk management throughout the organisation. Risk Management Culture Thai AirAsia recognises the importance of effective risk management and believes that a culture of risk awareness can be cultivated through promoting understanding of risk management across the organisation. The Company is therefore committed to creating and promoting a risk management culture that is consistent, sustainable, and measurable. Risk Management Workshop Risk Management Communication Risk Management Awareness Risk Management Reporting To conduct training with the risk owners of each department to properly assess and effectively manage their risk To create awareness and emphasise the importance of risk management to all levels of employees via e-learning To effectively communicate risk management policies and strategies throughout the organisation, as well as to create a risk management culture and the evaluation of performance through annual KPI’s To submit enterprise risk management report every quarter to management and bi-annually to the Risk Committee Enterprise Risk Process Thai AirAsia and Risk Management implement the guidelines and the integrated framework in line with the international principles of the ISO31000 standard. The 7 steps of Risk Management process are: 1. Define and review criteria for evaluating risks, both internal and external, as well as determining risk management strategies and objectives for the company including acceptable levels of risk. 2. Identify the event that could have a negative impact on the Company’s ability to achieve target or mission considering both internal and external factors. 3. Assess the identified risks by considering the likelihood of the risk occurring and the potential impact if the risk were to occur by applying the context of the degree of impact and proximity of the threat. Correlating the risks and how it could impact other risks as well as prioritising the risk based on the risk level. 4. Plan to prepare for andmitigate the impacts of potential threats, and to increase business opportunities while considering the level of risk along with cost management. 5. Implement or respond to risks that are defined with high and very high likelihood of occurrence. 6. Monitor and review the risk management system, the effectiveness of controls placed and changes to the business environment. 7. Communicate and report to the Audit and Risk Committee as well as providing regular reports to Management accordingly. Strategic Risk 1. The potential for losses due to current market competition The COVID-19 pandemic has severely affected the aviation industry, forcing some airlines to cease operations or resize their business. To sustain ongoing operations through the disruption, Thai AirAsia expands its offering “Beyond Just Affordable Flights” with the launch of logistics and food delivery business. Various products and services besides air travel shall keep existing customers and attract new customers to the brand. Yet its mission is to be the leading low-cost carrier in Asia Pacific. Thai AirAsia has maintained a dominant market share among competitors by boosting flights and frequencies even during the crises. Thai AirAsia carried 9.9 million passengers across Asia Pacific, served 13 destinations in 58 cities and flew 65,300 flights in 2022. To gear up for a return to normalcy and resume operations at full capacity after COVID-19 travel restrictions eased and air travel demand came back, Thai AirAsia has retained much-needed talents, particularly among mechanics, technicians and pilots and has performed robust aircraft maintenance over the past years.
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