Recognizing that its operational and financial performance and growth are susceptible to various risks, Company has instituted prudent risk management practices to ensure sustainable growth.
Among the risks that the Company faces are:
- Financial planning
- Delays in the completion of projects
- Reduction in strategic land for development
- Human Capital
- Natural disasters
To deal with major risks, the Company has implemented risk management to mitigate business risks as follows:
- Competition: the Company conducts its business activities in a professional manner and will continue to fulfill the terms agreed with the tenants. The Company also maintain the quality of its products at acompetitive price including quality after-sales service.
- Financial risks: the Company’s financial planning is thorough and well considered with the aim of ensuring funds availability for development projects, the fair value of the Company’s projects, liquidity, financial ratios and the optimized use of funds.
- Lawsuits: in the process of acquiring land, the Company always reviews the ownership and completeness of the papers to avoid the possibility of claims and disputes over land ownership in later days.
- Risk of delays in completion of projects: the Company anticipates this risk by careful selection of contractors based on the contractor’s experience as well as penalties for the contractors if the implementation of the development is not in accordance with the agreed upon work plan and budget.
- Risk of reduction in strategic land for development: the Company will continue to identify and acquire strategically located new land with potential.
- The Company takes into account the interests of its employees by providing competitive remuneration and providing career development opportunities to create a condusive working atmosphere and environment.
- Fluctuation risk: the Company has developed a market segmentation plan that generates recurring income from the commercial sector.
- Risk of natural disasters: the Company anticipates this by insuring the fixed assets and inventory of the Company; the Company upholds high safety standards and has its own firefighting units in MM2100 area.