Challenges and Commitments

GGC foresees the current trends of global changes which create new risks and opportunities that may impact our future business operations, such as the development of technology that affects human life and behavior, climate change, and emergence of new epidemics, etc. Therefore, GGC places importance in a systematic risk management within the organization while continuously taking into account both internal and external business environment that may affect our operations in order to identify potential risks and problems. As a result, GGC is able to cope with challenges in a timely manner and drive the organization to achieve goals with maximum efficiency.

Key Stakeholders

Shareholder, Investor and Analyst


Efficient and effective risk management in line with
business goals and long-term corporate strategies.
Monitor and manage risks
to reduce impact to an acceptable and appropriate level.

Management Approach

Guidelines for Risk Management and Internal Control

GGC has appropriate risk management and internal control guidelines that are in line with international standards, namely COSO (The Committee of Sponsoring Organization of the Treadway Commission) 2017 and ISO 31000 standards in order to achieve the objectives of effective internal control in the area of operation, as well as accuracy and completeness of the report and compliance with the law and relevant rules for conducting business, which will help support the work of the Company and ensure accuracy, transparency, achieve the Company's objectives, and respond to the expectations of stakeholders who expect the organization to conduct business with transparency, ethics and social responsibility. The Company, therefore, attaches great importance to (Governance, Risk Management and Compliance (GRC) to promote business operations with stability and sustainability and meet the expectations of key stakeholders.

GGC has established a unit responsible for supervising and monitoring the internal control system to ensure its efficiency on a regular basis in order to operate efficiently. The generated reports are accurate, reliable, and the operations are in compliance with relevant laws and regulations. The Company is able to protect its assets from the misuse of authorized persons and those involved, including sufficient transactions with persons who may have conflicts of interest and connected persons. Furthermore, the internal audit department has reviewed the internal control system of the Company, according to the risk-based audit plan.

In addition, GGC emphasizes through risk assessment quarterly so that risk management and internal control are in line with corporate governance principles and the good practices of the SEC, as well as the best practices of the Company Group, while increasing the efficiency of internal control according to international standards to achieve the objectives of internal control in all 3 aspects, namely Operation, Reporting, and Compliance. The Risk Management Committee Supported and suggested the risk and control self-assessment (RCSA) development process in order to increase the efficiency of internal control and create understanding of operators in carrying out activities. The committee can assess the key points of the internal control process and assess work process risks, as well as implement a risk culture promotion program for employees at all levels within the organization. Furthermore, in order to improve GGC's risk management corporate culture, the company provides its employees with expert guidance on enterprise risk management. This training involves the Board, Executives, and all levels of employees, making risk management a part of everyone's job description. This approach promotes better knowledge and understanding of corporate risk management, ultimately leading to increased effectiveness. As well as encourage all employees’ awareness of risk culture by conducting the following projects:

For more about our risk and crisis management program, see the 2022 Integrated Sustainability Report at Integrated Sustainability Report 2022

  • Risk Management Workshop for Top Management Project to increase efficiency and understanding of risk management at both the operational and corporate levels for executives.
  • Risk Awareness Training Refreshment to raise awareness and increase risk management efficiency, as well as internal control/ to exchange risk issues arising from each department within the Company.
  • Risk and Control Self-Assessment (RCSA) Project to ensure effective risk management and internal control, as well as build confidence and credibility of financial reports, ensure property protection and compliance with relevant laws and regulations of the Company.
  • Business Continuity Plan (BCP) Project to prepare for incidents, reduce the impact on business operations, and enable employees at all levels in the business continuity planning (BC Team) to understand their roles and responsibilities, according to the guidelines set forth in the business continuity plan with efficiency.

See the details about the training on Governance, Risk Management and Compliance : GRC and Risk and Control Self-Assessment: RCSA for GGC’s top management in 2022 at GRC and RCSA Refreshment Workshop for Top Management : GGC GRC and RCSA Refreshment Workshop for Top Management

The Company manages risks and improves internal controls along with strategic management for the business operations in order to meet the strategic objectives and key objectives of the organization within an acceptable risk level. This covers risk management in terms of quality, security, safety, occupational health and environment, Human Rights, Labor Rights, Compliance with relevant laws, rules and regulations and Anti-Corruption, while responding to stakeholders in a fair manner, by analyzing the business environment, covering both internal and external factors that may affect the Company's current business operations. The Company also requires risk assessment along with strategic planning, investment and business planning, in order to conduct business in accordance with the annual corporate goals, both Short-Term and Long-Term Goal. The Company also implements measures to prevent the impact that has been defined to control the level of risk to an acceptable level, as well as conduct Root Cause Analysis in case of non-compliance with the plan.

The Company considers risks, covering corporate risks, operational risks and emerging risks in line with the COSO Standards (The Committee of Sponsoring Organisations of the Treadway Commission)

Emerging Risk

GGC has focused on analyzing potential emerging risks that may affect business operations in the next three to five years, as well as establishing measures to prevent various impacts in order to control the risk level to an acceptable level.

Risk Regarding Customer Trends

Category of Risk Societal and Technological Risk
Sources of Risks Natural Factor and Macroeconomic Factor
Scenario Analysis

More and more customers are becoming environmentally conscious and are changing their behavior accordingly. They are well-informed about the progress made in electric vehicle and battery technology, as well as the global shift towards renewable energy. As a result, many international sectors are collaborating, such as the 26th Conference of Parties (COP26) in 2021 and the 27th session (COP27), which raised awareness about the need to reduce greenhouse gas emissions and led to policy and legal changes to support the transition to low-carbon businesses, including measures to increase carbon taxes. This could result in higher production costs for products with greenhouse gas emissions and have long-term effects on business operations. The Low Carbon Economy is based on using renewable energy (RE) for Primary Energy, such as solar energy, wind energy, bio-energy, and fuel cells, as well as using technologies for greater energy efficiency.

Furthermore, holistic economic development is a 3-dimensional economy development, consisting of the Bioeconomy, which focuses on using biological resources to create added value, the Circular Economy, making the most use of various materials, and the Green Economy, which is an economic development that does not focus only on economic development, but also social development and preserving the environment in a balanced way to achieve stability and sustainability.

Possible Effects

Biofuel Business: GGC's revenues and profits have been negatively impacted by demand for internal combustion engine (ICE) fuels, both diesel and gasoline. Demand for these products has a tendency to decrease from consumers switching to EVs in the future. However, there are also positive impacts, namely the business opportunity to expand into oleochemical products and biochemical products, including Methyl Ester Derivatives and Ethanol Derivatives, which have a good potential market growth.

The oleochemical business is positively affected by growing demand for Bio-based and Sustainable Ingredients. In addition, it can also be extended to High Value Products (HVP) as well, including the BCG Model policy that promotes adding value to agricultural products to be used as raw materials to produce high-value products. The oleochemical industry has received promotion and support from the government sector.

Mitigation and Opportunities

  • Closely monitor and support the renewable and alternative energy development plans. Investigate whether and how the plan is adjusted to comply with the national electric vehicle policy, compared to the original revised plan 2018 - 2037 (AEDP 2018)
  • Collaborate with business partners in the study and development of products for the domestic market and to support future investments, including finding suitable technology to invest in projects for advance biofuel products.
  • Study marketing information with the GC group to identify market opportunities and suitable technology for the project to create more value for ethanol products.
  • Collaborate with business partners and technology licensors in order to expand the business into the biochemical business more effectively.
  • Study and expand the business from oleochemical products to downstream products through Home & Personal Care (HPC) products, which have a higher value.

Risk Regarding Debt Crises

Category of Risk Economic
Sources of Risks Macroeconomics Factor
Scenario Analysis The World Economic Forum (WEF) forecasts that many countries around the world may face risks due to rising debt as a result of the economic crisis during the COVID-19 pandemic, which may affect financing ability to pay debts and the economic growth of the public and private sectors in the country. GGC has conducted a sensitivity analysis and a stress test from key risk factors influencing the net profit of the organization in order to determine measures to support losses that may occur through financial modeling in order to consider the impact on net profit from changes in key factors, such as foreign exchange rates, energy prices, prices of raw materials and prices of major products.

Possible Effects

The risk of debt repayment of GGC's business partners and joint venture affects the current business performance and business plan in the future significantly. As a result of the economic crisis during the COVID-19 pandemic and global geopolitical conflicts, the domestic economy may slow down. Business partners face financial difficulties or customers cannot purchase products due to slower demand. This can cause the supply chain to come to a halt and affect the cost of production. The demand for both oleochemical products and chemicals can decline, respectively. This can lead to a decrease in GGC's performance. This may affect the ability to pay debt and delivery of goods and services. Furthermore, operating costs can lead to loss of ability to generate income to the point of being unable to compete in the market. This can affect the confidence of stakeholders.

Mitigation and Opportunities

  • Formulate a strategy for responsible product creation through applying innovation to develop and present a product Growth Portfolio, as well as expand the market to high value products from methyl ester (B100), ethanol products (E100), Bioplastics, Biochemicals, and the Food & Nutraceuticals products that can strengthen GGC’s competitive advantage in the oleochemical industry and biochemicals industry. Furthermore, plan to expand sales to other export markets to mitigate the impact of economic fluctuations.
  • Carry out risk assessments of key suppliers using the ESG Assessment form and financial assessments during the process of registering the Vendor List, with regular assessment and monitoring of liquidity risks.