 |
|
The Company has
emphasized the significance
of managing the organization’s
risks. A Risk Management
Committee has been established
comprising of the Deputy
Managing Director as the
Chairman and executive
officers from all work
departments as members
of the committee to constitute
a total of 10 members.
In the year 2010, 12 meetings
were held, during which
risks of the entire organization
were identified and prioritized,
and risk management guidelines
imposed on designated
officers in order to implement
measures to control and
maintain risks at acceptable
levels. The important
risks identified are as
follows:
1. Market Risks
1.1 Having few major customers.
The Company is seeking
new customers in order
to spread this risk.
1.2 Highly competitive
market affecting sales
volumes. The Company undertakes
innovative developments
of raw materials and design
in order to create product
differentiation.
2. Production
Costs
2.1 Fluctuations of world
cotton prices have affected
future costs of textile.
The Company has entered
into textile futures contracts,
including raw materials
which are cotton alternatives,
in order to reduce raw
material costs of production.
2.2 Labour shortage, which
has become increasingly
difficult to recruit and
more costly, has compelled
expansion of the production
base to other provinces,
including the procurement
of hired producers. In
the future, this expansion
of production base could
also incorporate neighbouring
countries.
3. Human Resource
The Company has implemented
a personnel development
plan in order to ensure
sufficiency and congruency
with the Company’s continual
business expansion. Personnel
development has especially
been carried out with
regard to filling key
positions through a Succession
Plan and Individual Development
Plan.
4. Finance
The Company has minimized
the impact of exchange
rate fluctuations through
the use of natural hedge,
as well as by entering
into foreign currency
futures contracts as appropriate
for any particular time.
|
|
|
|
