- Regulation of the Minister of State-Owned Enterprises No. PER-01/MBU/2011 concerning the Implementation of Good Corporate Governance in State-Owned Enterprises.
- The Pertamina EP Cepu Regional 4 Risk Management Implementation Treaty was signed on 22 June 2021 as a form of Management’s commitment to risk management.
- STK Risk Management Guidelines No. A4-001/H30000/21-S9 PT Pertamina dated July 26, 2021.
- STK Pertamina EP Cepu Risk Management Guidelines No. A-02-002/CP0220/2019-S9 REV-02 dated 16 August 2019 & Project Risk Management Guidelines No. A.02-003/CP0220/2019- S9 REV-02 as a risk management guideline applicable at Pertamina EP Cepu Regional 4.
- Organizational Work Procedures (TKO) & Individual Work Procedures (TKI) related to risk management at Pertamina EP Cepu Regional 4.
The risk management system implemented at Pertamina EP Cepu Regional 4 generally emphasizes five things, namely Awareness& Alignment, Framework, Discipline, Habitsand Culture.
Risk Management Treaty
- Whereas the dissemination and implementation of Risk Management so that it becomes a corporate culture is the generic responsibility of all levels within the Company including the Board of Directors, Management, Employees and Third Parties;
- Whereas the Company’s Risk Management carries out Risk Mitigation to reduce the probability & impact of risks for the company (including risk transfer through insurance) aiming to create and protect value for all Stakeholders by prioritizing HSSE Aspects in accordance with Pertamina’s Corporate HSSE Policy;
- That the ISO 31000:2018 Risk Management System is integrated in all of the Company’s Business Processes and forms the basis for the Implementation/Certification of ISO 37001:2016 Anti-Bribery Management System (SMAP), ISO 9001:2015 Quality Management System, ISO 14001:2015 Environmental Management System, ISO 45001 :2018 Occupational Health and Safety Management System, and SUPREME (Sustainability Pertamina Expectations for HSSE Management Excellence);
- Whereas Risk Management is a Key Performance Indicator (KPI) for all functions within the company to improve performance, encourage innovation through CIP (Continuous Improvement Program) which ultimately supports the achievement of RKAP and RJPP;
- That the Company’s Risk Management Recording and Reporting is in accordance with Pertamina’s Enterprise Risk Management System (ERMS) Policy.
- Pertamina’s Risk Management Guidelines.
- PEPC Risk Management Guidelines.
- TKO Ongoing Business Risk Management & Top Risk PEPC.
- TKO PEPC Project Development Risk Assessment.
- TKO PEPC Operational Level Risk Assessment.
- TKO Pengelolaan Risk Register PEPC.
- Along with TKI-TKI derived from each TKO above.
Risk Mitigation Monitoring & Evaluation
The Ongoing Business & Top Risk Risk register was compiled in H-1 and carried out periodic monitoring and evaluation in the current year. Monthly monitoring reports to determine the development of the risk level of the risk event. The results of the monitoring & evaluation can be in the form of decreasing/increasing the impact scale and or risk probability scale, active or retired status of risk, effectiveness of risk management, and others.
Early Warning Risk
In the risk management strategy, Pertamina EP Cepu implements an Early Warning Risk analysis through a comprehensive analysis of business developments while still implementing the risk management that has been carried out and coupled with more detailed mitigation monitoring which will be included in the Company’s Top Risk Monitoring Report.
Risk Management Roadmap
To support the achievement of long-term strategies and the realization of a Risk Culture within the Company, a Risk Management Roadmap has been prepared as a reference in its role as a system integrator, monitor & control, facilitator (enabler) based on the Company’s Rules & Policy (Corporate Rule & Policy Corporate Advisory).
The Company’s 4 Risk Management Roadmap is divided into 5 (five) Waves, each of which has a Key Success for achieving the development process and the realization of Risk Culture within Pertamina EP Cepu.
The five wavesof the Pertamina EP Cepu Risk Management Roadmap include:
- Wave 1 – Awareness & Alignment
- Wave 2 – Framework
- Wave 3 – Discipline
- Wave 4 – Habits
- Wave 5 – Culture