5 Benefits of Risk Management in Enforcing Anti-Bribery and Corruption in KFTD

Risk management is a fundamental framework to help businesses minimize multiple risks in numerous sectors. It includes the employee’s and environmental safety, integrity in healthcare services, protection of monetary assets and investment, up to project and stakeholder organization that may cause potential acts of default. 

This also applies and is necessary for KFTD‘s long-term mission, especially in enforcing its effort to prevent corruption and bribery. 

5 General Benefits of Risk Management for KFTD

Even though the procedure is multifaceted and requires an intricate process, companies can benefit from the intangible as follows. 

1. Risk management allows leaders to identify, measure, and review opportunities and risks more effectively, facilitating their decision-making. This also allows the decision-maker to avoid conflict of interest. 
2. In a crucial economic dynamic, it is inevitable to protect the company’s financial investment and assets. In this term, risk management aims to reduce loss, especially ones that are related to fraudulent activities (such as gratifications, bribery, and corruption), or the cost of legal process. 
3. Risk management also ensures that the company complies with the pertinent regulations to avoid penalties or sanctions, for example, due to an act of default as a consequence of a conflict of interest or corruption.  
4. By recognizing the risk, a company may also improve its organization and systems through certain ethical standards and transparency in its operations. Hence, adding a competitive value that better attracts potential partners and consumers. 
5. An effective and solid risk management system with a feasible anti-bribery and corruption strategy signalizes that the company consolidates its ethical practices.  On one side, it articulates a commitment to preventing corruption and bribery and safeguarding the business against the destructive impact of those fraudulent acts.  So, it facilitates the company to retain and manage their stakeholders’ and investors’ trust. 

The Objective of KFTD Risk Management

To help the company achieve its mission properly in terms of risk management, KFTD executes a risk management framework based on ISO 31000:2018. There are seven targets of the risk management framework, which also include averting pitfalls causing the KFTD act of default. 

1. Analyze various options and create appropriate plans to tackle the risks.
2. Achieve the company’s main targets and objectives with result orientation. 
3. Employing a structured risk management framework to enhance trustworthiness in the decision-making process. 
4. Persuade and engage better with both stakeholders and shareholders of Kimia Farma Trading & Distribution. 
5. Preserve both the authority and responsibilities of each individual. 
6. Endorse more efficient and effective utilization of resources. 
7. Improve the quality of the risk management process and system management by evaluating the company’s performance.

Comprehensively, a clear, robust yet viable risk management system that is integrated with GCG and anti-bribery and corruption discipline is a fundamental framework to reduce possible deceitful behavior. Correspondingly, this framework supports KFTD in executing and achieving its business growth, objective, and greater mission.