Enterprise Risk Management

The Company’s Risk Management System

The Company does not have a Risk Management Committee which is not practicable at its current operational set up. Risk Management is the responsibility of the Board of Directors. Management has adopted sound policies and measures in order to preserve its financial assets and fully maximize effectively their usage and sees to it that these are implemented and monitored.


The Audit Committee assists the Board in Risk Management oversight especially in ensuring that the internal controls and policies are implemented, reliability of financial reporting, and compliance with laws and regulations promulgated by regulatory bodies.

Financial Risk Factors

Management ensures that it has sound policies and strategies in place to minimize potential adverse effects of the financial risks in the Company’s financial performance.   Management has adopted a policy of dealing with credit worthy individuals/institutions as a means of mitigating the risk of financial loss from defaults.   

Cash and cash equivalents are deposited with stable and reputable banks. Placements normally have 30-day maturities, thereby, reducing the risk of change in value.  The Company is not engaged in the trading of financial assets for speculative purposes.  Presently, its source of cash comes primarily from the payments of major stockholders of their subscription payables.  Because of the commitment given by the major stockholders to continue supporting the financial operations of the Company by paying their subscription payables even in the absence of a formal call by the Board of Directors, exposure to liquidity risk is minimized.

The Company’s exposure to the risk of changes in interest rates is minimal since the cash and cash equivalents have fixed interest rates not affected by interest rates in the market.

The Company is exposed to foreign currency risk primarily with respect to the monetary assets denominated in US Dollar for its Indonesian mining project. 


The Company does not have any loans or notes payable, hence, it is not exposed to the risk of changing market interest rates.  The Company has no material exposure to credit risks from outsiders.

Other Risks

Management is aware of the following risks that the Company will face in the future as regards its mining project:

  1. Mining metals and non-metals is essentially risky and expensive and faced with multiple problems.
  2. The prices of commodities are always subject to fluctuations.
  3. All governments change its heads and regulations are subject to unpredictable changes and government laws and regulatory policies and corporate governance poses hazards to plan, execute and deliver on long-term projects.
  4. The global weather is unpredictable.
  5. Many governments are demanding larger and larger share of the profits.  Higher taxes and rents are seen as management problems.
  6. Terms of contracts may be subjected to unpredictable changes.

The Company’s response to the risks and challenges it faces are as follows:


  1. To explore less risky exploration and exploitation of minerals;
  2. Shorten exploration period and look for the most economical ways to explore and to conduct the latest geological and geophysical techniques to minimize the risks of exploration;
  3. To engage experts to utilize proven hedge and financial initiatives to mitigate and minimize inherent risks of the volatility of commodities;
  4. To place importance in community welfare and community relationship.
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