With the ERM mindset continuously being assimilated into the Company’s culture and practices, ERM has been embedded in strategic, tactical and execution planning as well as in key-decision making processes such as insurance management. Manila Water has a risk-based insurance program wherein coverage considers relevant risks and existing controls in place. The integration of ERM with insurance management ensures that insurance provisions in contracts are custom-fit to respond to specific project risks.
To aid in the quantification of risks and determine the effectivity of risk management plans, Manila Water utilizes Key Risk Indicators (KRIs) with regular monitoring and reporting to management. The use of the KRIs enhances the analysis of risk levels and risk mitigation strategies. In addition, risk tolerance statements have been established for certain processes.
In line with management’s commitment to sustain the ERM Program in Manila Water, the ERM maturity rating continues to be part of the corporate targets. Manila Water also conducts an annual awards program, the Gawad Iwas-Lunas: Risk Management Excellence Awards to recognize individuals, teams and departments that have significantly embedded risk management and exhibited risk culture in the Company.
The risk management system of Manila Water is reviewed and assessed annually by the Internal Audit Department using a risk maturity assessment framework aligned with global best practices to determine the system’s adequacy and effectiveness. Manila Water subjects its ERM system to external assessment from time to time.