Chapter 1 General Principles
Article 1
To strengthen the comprehensive risk management level of Yunnan Energy Investment Co., Ltd. (hereinafter referred to as "the Company"), enhance risk resistance capabilities, and promote the sustainable, healthy, and stable development of the Company, this system is formulated in accordance with the State-owned Assets Supervision and Administration Commission's "Guidelines for Comprehensive Risk Management of Central Enterprises," "Basic Norms for Internal Control of Enterprises," and supporting guidelines, combined with the actual situation of the Company.
Article 2
The term "risk" in this system refers to various uncertain factors that affect the achievement of the Company's operational goals during its business development process, including strategic risk, operational risk, financial risk, market risk, legal compliance risk, etc.
Article 3
This system applies to the Company's headquarters and all affiliated companies. The term "affiliated companies" refers to wholly-owned or controlling companies at all levels that are actually controlled by the Company.
Article 4
The overall goal of comprehensive risk management is to improve and perfect the risk management system and mechanism around operational objectives, strictly implement the basic procedures of risk management, timely identify potential risks that may affect the achievement of operational objectives, and take corresponding risk response measures to control risks within acceptable limits, ensuring the healthy and sustainable conduct of the Company's business activities. The specific objectives of comprehensive risk management are:
- Ensure that the Company's management complies with relevant laws and regulations;
- Ensure that risks are controlled within an acceptable range that aligns with overall objectives;
- Ensure the implementation of the Company's relevant rules and regulations and major measures taken to achieve operational objectives, safeguarding the effectiveness of management and improving the efficiency and effectiveness of business activities, thereby reducing the uncertainty of achieving operational objectives;
- Ensure the establishment of response plans for significant or sudden risks to reduce the likelihood of substantial losses due to catastrophic risks or human errors;
- Ensure effective communication of true and reliable information internally and externally.
Article 5
The Company's risk management should adhere to the following principles:
- Strategic Orientation Principle: Guided by the Company's development strategy, serving the achievement of strategic objectives;
- Importance Principle: Comprehensive risk management should focus on important businesses and high-risk areas based on a thorough understanding of risks;
- Adaptability Principle: Adapted to the Company's business scope, operational scale, organizational structure, and risk status, and adjusted and improved in a timely manner with changes in the market, technology, regulation, and legal environment;
- Holistic Principle: Risk management should consider the correlation and mutual influence between risk factors and cannot view the possibility of risk occurrence and its subsequent impact in isolation;
- Comprehensiveness Principle: Risk management should cover all business functions and personnel of the Company, throughout the entire process of decision-making, execution, supervision, and feedback.
Chapter 2 Comprehensive Risk Management Organizational System
Article 6
The Company should establish and improve the risk management organizational system, which mainly includes: the Board of Directors, the Party Committee, the Audit Committee, the General Manager's Office, the Risk Management Committee, the Risk Management Department, business functional departments, and supervisory management departments.