As a holding company, many of Ayala’s risks are derived from its subsidiaries and affiliates. Their performance also significantly impacts the viability and brand of Ayala itself. In addition, risks related to the regulatory environment, talent, and disasters are also present in Ayala’s subsidiaries and affiliates. The conglomerate nature of our business warrants a groupwide mitigation strategy.
It is with this on the agenda that the Ayala Enterprise Risk Management Council, the group’s association of risk practitioners established in 2012, works on alignment of framework, building capabilities, and forging synergies to promote a culture of risk awareness towards a sustainable and resilient conglomerate.
We will continue to develop programs that include engaging and communicating on risk more effectively, bringing greater clarity to risk management strategy and risk management framework, introducing consistency in the process and language used for risk assessment, and reporting across the business service lines.
We believe that any framework of internal control must be in line with our core values and culture that promotes good risk management processes. While our current processes and reporting capabilities provide us with an appropriate risk framework, we continue to enhance our assessments considering external factors that may impact the achievement of our objectives.
A more detailed discussion of risk management is presented in the Annual Corporate Governance Report available in our website.