Pan Brothers also ensures good corporate governance by way of setting up and maintaining a Risk Management Committee. The Risk Management Committee is overseen directly by the Board of Commissioners and Board of Directors in order to manage the risks of Company. To carry out the duties of Risk Management; the Committee liaises with the Legal Division, Finance & Accounting Division, Human Resources Division and other relevant divisions.

As part of the Company’s commitment to effectively implement GCG, the Risk Management Committee, who is responsible to monitor business-related risks, effectively conducts the risk management process and activities in accordance with existing regulations. The purpose of this is to ensure equal perception and understanding of risk management across all levels of the organization and to realize coordinated and integrated risk management so that all strategic initiatives on the ground are in line with our overall corporate strategy.

• Our business is exposed to many risks and uncertainties that could adversely affect our financial condition, results of operations, and stock prices.
• Political and economic changes domestically or in the export destination countries can undermine and weaken the Company’s performance.
• Disruption in incoming logistics would affect and delay the delivery and undermine customer’s trust to the Company
• The strengthening/weakening of IDR above certain limit and the increase in rupiah expenses like regional minimum salaries, fuel, electricity, telephone, etc could reduce the competitiveness of the company

The Company anticipates the business risks through well maintained planning and monitoring between projection and realization, where the Company could minimize all negative impact that might arise from the Company’s business risks. The Company has many buyers and always adds new buyers and maintains relationships depending upon the buyer. The company will ensure that the proportion of sales for particular buyer does not exceed 30% of the consolidated sales.

The company anticipates the impending cheaper products from other Asian countries and the possible higher import tariffs imposed by certain countries, to affect the sales. The Company would continuously monitor these new or adjusted trade restrictions that may be imposed and enhance any possible opportunities to increase competitiveness.