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Risk Management

ENTERPRISE RISK MANAGEMENT (ERM) is a structured and discipline business tools aligning Strategy,Process, People, Technology, and Knowledge with the purpose of evaluating and managing the uncertainties that enterprise face. The ERM project for PT PAM Lyonnaise Jaya (PALYJA) was initiated in September 2nd, 2009, spurred by a concerns from the company to identify and control major risks. All PALYJA business process have actively participated in all the stages involved.

THE ERM PROJECTS CONSISTS OF 3 (THREE) MAIN ELEMENTS :  

• RISK & CONTROL SELF ASSESMENT (CSA)  , which assists the company to identify major risks, controls and treatment plans. The company have also measured risk impact from financial, operational and/or strategic measures, which is portrayed into 3 (three) perspectives, namely Inherent Risk Level, Residual Risk Level and Expected Risk Level.

• BUSINESS CONTINUITY PLAN (BCP), which formulates actions to be taken during a disastrous event.  During this project, the BCP process incorporates 22 critical functions in PALYJA and bring into play 4 (four) scenarios of disaster events, including: fire breakout, earthquake, riot and chlorine leakage, which may significantly disrupt PALYJA operations. Through the BCP process, the company performs a Business Impact Analysis and prepares Organization Structure, Disaster Recovery Plans, Communication Call Tree, equipments as well as infrastructures needed during  events of disaster. A comprehensive guideline is documented and consolidated in PALYJA Business Continuity Plan Manual Book.  

• INSURANCE REVIEW  , which analyzes PALYJA’s insurance adequacy and coverage, which include 3 (three) types of insurance coverage: Liability Insurance, Industrial All Risk Insurance and Money Insurance. Through the Insurance Review, the company is able to comprehend its insurance  coverage mechanism and identify areas of improvement .