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In this section we address the management of risk as a whole. We highlight risks other than those relating to treasury policies, which are dealt with in the Management Discussion and Analysis.
It is often said that one who does not risk cannot gain and that the greatest risk is not taking one. While true to a certain degree, taking risks without full knowledge of the implications is foolhardy. Antam realizes that mining is a high-risk business, dependent on non-renewable reserves. Antam uses the calculated risk principle in allocating Antam’s resources. Risk Management is intended to ensure the continuity, profitability and expansion of the business.
To manage Antam’s risks, Antam conducts risk identification and mapping, risk measurement and assessment, and generates risk treatment strategies and risk management policies. The implementation involves creating a work program, which includes preparing detailed risk management procedures and mechanisms.
In 2003, Antam formed a Commissioner-level committee (see chapter on Good Corporate Governance), with the task of creating a risk philosophy and approving of risk policies formulated by the business units. Antam also has a hedging policy to help manage the volatility risk of commodity prices.
PT ANTAM Tbk
Gedung Aneka Tambang Jl. Letjen T.B. Simatupang No. 1
Lingkar Selatan, Tanjung Barat Jakarta 12530 - Indonesia
Phone : (62 - 21) 789-1234, (62 - 21) 781-2635, Fax : (62 - 21) 789-1224
email: corsec@antam.com - www.antam.com