Risk Management

The Company constantly manage the Risk Management System to identify, assess, monitor and follow up on risk factors that may affect the way the Company’s business is managed, both strategic or operational policies.

The Risk Management System coordinates with the Board of Directors and will deliver their judgment as consideration in making business plans. Directors then examine and approve the delivery of the variety of risks to all business units of the Company.

The risks are then prioritized and plans are made to mitigate the risks to be managed so that exposure to such risks remain within the limits of tolerance in accordance with the provisions. Every quarter, all risks examined and important risks are presented to and discussed by the Board of Directors and Audit Committee.

In the mobile telecommunications industry, the Company faces a variety of risks that could potentially affect the achievement of the Company’s business objectives. Therefore, the Company has consistently manage the risks that are inherent in the mobile telecommunications industry.

Some of the major risks faced by the Company are technology Risk Mobile due to  mobilephone is one of the electronic devices that  evolved very rapidly. Changes with more advanced technology and difference from the products sold by the Company at this time, can impact negatively and materially and directly affect the Company's product sales and result in inventory that cannot be sold.

Exchange Rate Risk due to import of mobile products, Retailer/Sales Agent Risk due to  a distributor of highly dependency on the activity and results of the retailers/sales agents to sell the Company’s products, risk of Changes in Government Regulation on Telecommunications and Mobile Phone, Business Competition Risk and the risk of Change in Consumers’ Taste.