Risk management has become a cornerstone of all companies and institutions to ensure operational sustainability. Like other large companies, PT Kimia Farma Trading & Distribution (KFTD) also has a risk management mechanism so that KFTD can continue its business objectives as a leading company in the healthcare industry in Indonesia.
Operational Guidelines
Kimia Farma released its latest risk management guideline in October 2018 that aligns the company’s management process with ISO 31000:2018 to make decisions and assist KFTD in determining its business objectives and achieving all its business goals.
Considering how important risk management is to Kimia Farma’s operational sustainability and overall governance, it is little wonder that KFTD enforces risk management at all levels of work, from local work units to KFTD’s top management.
As in all other branches of KFTD, KFTD always conducts evaluations to improve risk management processes that are deemed unsatisfactory and fail to prevent several operational oversights that are detrimental to Kimia Farma.
How the Process Works
In implementing the risk management process throughout Kimia Farma’s organization, the company uses an integrated structure consisting of the Board of Commissioners, Board of Directors, Work Units, Internal Supervisory Unit, and Compliance and Risk Management Unit to ensure its seamlessness.
The risk management process at Kimia Farma generally involves the following framework:
- Commitment and Leadership Pattern
- Design
- Implementation
- Evaluation
- Continuous Improvement
In reference to the framework above, Kimia Farma starts the risk management process by establishing the internal and external context of the risk to see how it will affect the company.
After that, Kimia Farma identifies, analyzes, evaluates, and handles risks so that the company knows how to deal with them, whether beneficial or detrimental.
In the end, all branches of Kimia Farma must record the risk management process that has been carried out previously so that all levels of the Kimia Farma management organization can draw references to deal with similar processes in the future.
Conclusion
Considering KFTD’s integrity and reputation, it becomes evident how risk management is necessary to keep the company and Kimia Farma’s other subsidiaries stay afloat. With this risk management policy, Kimia Farma can remain in top shape in providing the best products and services in its industry.