Risk Management
Performance Highlights
Our Commitment
AP Thailand recognizes that effective risk management is a crucial factor for stable and sustainable business operations. The company is committed to developing risk management systems as an important mechanism for driving the organization. This is accomplished by integrating risk management into business decision-making processes at all levels, in order to effectively anticipate, prevent, and manage risks that may impact operations. The company ensures that risk management meets international standards and responds to the ever-changing circumstances of the real estate industry.
The company has established a Risk Management Committee with the responsibility to oversee and provide risk management guidance to management, as well as develop adaptable practices according to the business environment and new challenges. Additionally, the company put an emphasis on creating an organizational culture with risk awareness. This is accomplished by raising awareness and risk management capabilities among employees at all levels to ensure readiness in preventing and reducing impacts from potential risks. The company believes that with this approach, AP Thailand will be able to maintain competitiveness, create value for shareholders, and deliver safe and sustainable products and services to customers, and contribute to the steady and responsible growth of Thailand’s real estate industry in the long term.
Supporting the SDGs Goals
Stakeholders Directly Impacted
Challenges and Opportunities
The real estate industry is facing challenging changes in multiple dimensions, both at the national and international levels. Macroeconomic factors such as global economic volatility and rising and fluctuating inflation rates have impacted consumer purchasing power and business financial costs. Moreover, competition in the real estate market has intensified, particularly in terms of land acquisition and product development that meets evolving consumer needs.
Another significant challenge is regulatory and governance risk management, as the government continues to tighten environmental legislation, sustainable construction, and energy standards, which may result in higher project development costs. Additionally, changing consumer behavior, particularly the demand for flexible housing that accommodates technology and is environmentally friendly, requires companies to adapt by developing products and services that align with market trends.
However, effective risk management can open opportunities for organizations to strengthen and expand their business potential. Developing projects that align with sustainability standards and utilizing digital technology to assist in project management and market trend analysis will help companies reduce risks and increase business operational efficiency.
Furthermore, the company has established a risk management system that meets international standards and is globally recognized, thereby building credibility with stakeholders and enhancing its ability to access capital sources in the future.
Management Approach and Value Creation
AP Thailand recognizes the importance of risk management as a crucial tool that helps strengthen business stability.
The company is therefore committed to developing comprehensive and systematic risk management approaches to effectively anticipate, prevent, and cope with risk factors that may impact the company. The company's risk management is not merely a mechanism for damage prevention but also serves as a crucial factor in creating business opportunities, enhancing competitiveness, and building confidence among stakeholders. The company has established systematic risk management structures and approaches by integrating risk management into organizational strategy and operations at all levels, including the Board of Directors, executives, and employees, to ensure that all parts of the company have clear approaches for identifying, analyzing, assessing, and managing potential risks.
Risk Management Process
The Company has adopted the COSO Enterprise Risk Management - Integrated Framework (2017 COSO ERM) in conjunction with the Environmental, Social, and Governance (ESG) sustainability approach in its risk management process. Various risk management tools are applied, such as setting the organization's Risk Appetite, assessing and prioritizing risks using a Risk Map, monitoring risks through a Mitigation Plan, and using Key Risk Indicators (KRIs).
The risk management process consists of eight steps as illustrated below:
Corporate Risk Culture
Fostering a strong organizational risk culture is a critical factor in enabling effective risk management. The Company places significant emphasis on risk governance and actively cultivates an open and transparent mindset among employees at all levels. To support this, the Company has established clear policies and processes for the identification, assessment, and appropriate management of risks.
These efforts aim to build a resilient organization capable of adapting to a constantly evolving business environment. As part of this commitment, the Company has implemented a continuous enterprise risk management framework, which includes regular quarterly reviews of organizational risks, as well as the evaluation of emerging risks. These reviews encompass a broad range of dimensions, including economic, social, and environmental factors, as well as both internal and external influences that may affect the Company.
The Risk Management Committee evaluates risk performance reports and provides strategic recommendations to ensure that risk management processes remain effective and that the level of risk stays within the Company’s risk appetite. Additionally, the Company is committed to embedding risk management into its organizational culture. This includes supporting the development and implementation of specific policies such as the Business Continuity Management Policy, the Personal Data Protection Policy, the Anti-Corruption Policy, and the Human Rights Policy, among others.
