Report of the Risk Committee to the Board of Directors For the year ended December 31, 2015
The Risk Committee was established by the Board of Directors at its August 2015 meeting in pursuit of the Board’s oversight responsibilities in relation to risk governance in Manila Water. The Risk Committee’s roles, responsibilities and authority are defined in the Risk Committee Charter approved by the Board of Directors during its November 26, 2015 meeting.
In compliance with the Risk Committee Charter, the Committee confirms that:
- An independent director chairs the Risk Committee. The Committee has three out of four members who are independent directors.
- The Committee had one meeting during the year with the following attendance rate:
|Directors||No. of Meetings Attended/Held||Percent Present|
|Jaime C. Laya||1/1||100%|
|Jose L. Cuisia, Jr.||1/1||100%|
|Victoria P. Garchitorena||1/1||100%|
|Oscar S. Reyes||1/1||100%|
- The Committee reviewed and endorsed the Committee Charter for the approval of the Board of Directors.
- The Committee discussed with Management the adequacy and effectiveness of the Enterprise Risk Management process, including significant risk exposures, the related risk-mitigation efforts and initiatives, and the status of the mitigation plans. The review was undertaken in the context that Management is primarily responsible for the risk management process.
- The Committee has reviewed the Enterprise Risk Management Process and is satisfied that sufficient risk management systems are in place in Manila Water Company, Inc..
- The Committee noted the 2016 plans and initiatives of the Enterprise Risk and Insurance Management (ERIM) Department to create a robust risk awareness and management culture and to promote good risk management practices achieving appropriate risk and reward in Manila Water’s business.
The Risk Committee was established in August 2015, its tasks having been performed by the previously responsible Committee. The present Risk Committee addressed only the matters reported above and expects to more fully exercise its functions and meet Board, Management and shareholder expectations in the coming year.
February 24, 2016
JAIME C. LAYA
JOSE L. CUISIA JR
VICTORIA P. GARCHITORENA
OSCAR S. REYES