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Iran Construction Investment Co. (Plc)

Risk Management Analysis Report

 

Iran Construction Investment Co., in order to achieve the company’s objectives and to take care of the stockholders interest, formed a “Risk Management Committee” in 1392 and has been very active in going forward in this path.  The company has been very active working in this field with the cooperation of the subsidiaries companies.  After having many “Risk Management Committee” meetings, discussing, reviewing and deciding on the issues, the results of operations have been presented to the companies to be used.

The objectives of the “Risk Management Committee” are based on the International Kozo report and has been classified as follows

  • Efficiency and effectiveness of operations
  • Reliability Reports
  • Laws and Regulations

Among the responsibilities of this committee is to monitor, review and planning short-term goals, activities and identify the current risks and to achieve the ultimate goal which is to achieve effectiveness and efficiency.

This committee based on studies done and presented by Kozo, has grouped the organizations threatening risks into four following groups:

  • Strategic
  • Operational
  • Reporting
  • Compliance
According to the company's and its sub-holding companies, the activities and operations that involve domestic or foreign origin risks have been attributed to the following topics:
  • Strategies risks
  • Financial risks
  • Operational risks
  • Legal risks
  • Cultural and social risks
  • Political risks
  • Market risks
  • Credit granted to others risks

Risk Groups

Activities that were introduced and examined based on the components introduced by Koso, are as follows:

1. Firm level (Entire Holding – Strategic objectives)

2. The organization’s departments and sub-departments level (subsidiaries, projects,...)

3. Business processes levels (investment management, sales management, ..)

Iran Construction Investment Co.’s ongoing activities stages:

First Level - Researching the related risks to Purchasing land, design, construction and sales were done by the Risk Management committee with the help of the subsidiaries company’s engineering unit.

Second Level – The following Supporting processes were presented, discussed and reviewed by the Committee members and the subsidiaries company representative in the related units.  The results obtained in order to reduce the possible financial and other risks.

  • Budgeting
  • Cash Management
  • Investment management
  • Human Resource Management
  • Legal Affairs Management
  • Development and Technology
  • Information and communication
  • Procurement