Download - Siemens Pakistan

40 Directors’ Report
Enterprise Risk Management Committee
The Enterprise Risk Management (ERM) is the process of planning, organizing, leading and controlling
the activities in order to minimize risks on the capital and earnings of the company. In the recent years,
the external factors have fueled the need of an effective ERM system. The board constituted this
committee with an overall objective to avoid or mitigate the risks that may affect company's earnings in
short and long run. This Committee comprises of one executive and one non executive director. Two
meetings of the committee were held, attended by all the members, in which the committee performed
following tasks, which were in line with their terms of reference:
Review and assess the quality and effectiveness of the risk management system and ensure that the
risk policies are effectively managed and incorporated in the management structure of the company
Review and assess the nature, role, responsibility and authority of the risk management function
within the company and outline the scope of risk management work
Ensure that comprehensive system of control is established and that the risks within the company
are identified, mitigated and appropriate strategies are in place to manage them
Monitor external developments relating to the practice of corporate accountability and the reporting
of specifically associated risk, including emerging and prospective impacts
Over see the Enterprise Risk Management strategies to achieve current and accurate compliance
with operational and legal requirements and identification of foreseeable trends that could
significantly impact Siemens overall business objectives
Review the risk bearing capacity of the company in light of its reserves, insurance coverage,
guarantee funds or other such financial structures
The Committee is satisfied with the quality and effectiveness of the company's ERM system and its
coverage. The external auditors also performed a limited review of the ERM and expressed their
satisfaction.