ERM POLICY STATEMENT

The Management and employees of NLEX Corporation, are committed to implement an Enterprise Risk Management (ERM) System to manage all associated risks in order to maintain leadership in the tollways industry.

Specifically, the ERM System manages the risks and opportunities on the following corporate objectives:

  • Financial Perspective: Increase shareholder value by growing revenues, maximizing profitability and maintaining robust cash flows.
  • External Shareholders Perspective: Enhance relationships by delivering on customer value proposition, establishing positive brand positioning and fortifying partnerships with external stakeholders.
  • Internal Process Perspective: Achieve operational excellence in all aspects of operations, asset management, innovation, project delivery and compliance with all applicable statutory and regulatory requirements.
  • People and Organization Perspective: Build a professional, competent and engaged workforce and improve organizational resiliency and sustainability

To ensure the effective implementation of the ERM System, NLEX Corporation commits to:

  • Align the ERM with the Corporation’s existing management systems and culture;
  • Establish objectives and performance indicators that are aligned with overall organizational goals;
  • Comply with applicable legal and regulatory requirements;
  • Determine and designate competent personnel at all levels of the organization to manage ERM;
  • Provide necessary resources to assist those accountable and responsible for managing risks;
  • Have processes for communication and consultation with all interested parties;
  • Continually improve the ERM System through regular monitoring, measurement and review.

This is our commitment and together we shall achieve this.

GOVERNANCE FRAMEWORK

An ERM governance structure is established to ensure accountability and authority in implementing, managing, and improving the risk management processes and activities.  Qualified and competent personnel are nominated from the different levels of the organization to ensure that roles and responsibilities are carried out.

ERM FRAMEWORK

The arrangements for an effective ERM System is aligned with the guidelines set forth in ISO 31000:2009 (Risk Management – Principles and Guidelines). In implementing the ERM System, NLEX corporation is guided by the risk management framework as illustrated in the figure below.

To ensure effectiveness of the ERM System, all units and personnel apply the risk management principles provided in Clause 3 of ISO 31000:2009 at all levels of the Corporation.

The ERM Framework mirrors the Plan-Do-Check-Act (PDCA) cycle and consist of the following key elements:

Policy and Governance
Provides the mandate and demonstrates the commitment of the organization

Program Design
Design of the overall framework for managing risks on an ongoing basis

Implementation
Implementing the risk management structure and program

Monitoring and Review
Oversight of the management system structure and performance

Continual Improvement
Improvements to the performance of the overall management system