In the face of changing circumstances, in order to control and reduce the risk of operation and to create a resilient organization, CTCI has established a complete enterprise risk management (ERM) mechanism and promoted key behavior indicators under the Company’s core values to form a corporate risk culture.
▼ Risk Management Organization
▼ Risk Management Mechanism
In order to reduce the operational impact caused by internal and external uncertainties, CTCI implements a comprehensive risk management procedure to help it identify risks systematically, assess risks, and respond to risks (or opportunities) that may become a threat to the Company, which helps us to avoid or mitigate the impact on operations.
▼ Risk Management Process
Building Corporate Risk Awareness
In order to strengthen risk management and enhance the risk awareness of all employees, CTCI has organized lecture training, security and HSE (health, safety, and environment) activities through management systems and situational drills, among others, so that we can enhance the employees' risk awareness, cultivate their professional knowledge, and ensure that all employees understand the importance of risk, which all help to shape a risk culture. Moreover, we provide rewards and performance-linked appraisal system to encourage employees to report potential risks they find, thus mitigating the impact such risks may bring.
Risk Management Training
In order to strengthen staff’s risk awareness, we select employees to attend trainings and learn to apply risk management in various professional fields. Courses include occupational safety, process safety, information security, project management, high-risk operations, first-aid personnel training, and among others. Employees are encouraged to share their experiences in crisis management, which is a way of raising their risk awareness. In addition to internal experience sharing and case study sessions, CTCI employees also aggressively participate in external seminars to learn new information, share experiences with others, with a hope to stimulate creative and an in-depth risk management thinking.
▼ Risk management training
To reduce the Company's operational risks, we have formulated an "Emergency Response Management Procedure" for specific major risk events such as fires, natural disasters, environmental impact events, air conditioning anomalies, water cuts, power outages, earthquakes, typhoons, floods, fires, protests, or riots. The scope includes headquarters building and construction sites. The crisis drills allows our colleagues become familiar with the contingency measures and reduce the impact in the shortest time in the event of a disaster. The headquarters building conducted an annual evacuation drill in May 2019, and the safety training and fire drill for the fire self-defense team members were completed in October.
Preventive and Response Measures against the COVID-19 Pandemic
In response to the COVID-19 pandemic, we had set up the Group's Epidemic Prevention Center at the time of the outbreak and had launched the epidemic prevention mechanism accordingly. Risk management was carried out internally to maintain the health of all employees, while consensus was established with the suppliers and partners externally, and the continuous project operation plan was implemented to minimize the pandemic’s impact.
The members of the Group's Epidemic Prevention Center include representatives of business operations as well as the Chairman, the President of domestic and foreign subsidiaries, with the GSS CEO serving as the chief commander to instruct the relevant departments of the headquarter to work together. In addition to gathering and collecting information on epidemic prevention, the Epidemic Prevention Center actively tracks, verifies, evaluates, notifies, and formulates various regulations to see to it that all parties comply with and implement the regulations within the Group. We also hold daily global epidemic prevention video conferences and issue epidemic prevention reports to department heads for them to have true understanding of the Group’s current situation across various regions. That way, we can come up with countermeasures promptly.
▼ Preventive Measures for COVID-19