PT Latinusa, Tbk. has a commitment to implement the principles of Good Corporate Governance as an operational basis for managing business activities. The company also strives to provide maximum benefits to shareholders and stakeholders, but in business practices, the element of uncertainty both from the internal and external environment can influence the achievement of company goals.

The elements of uncertainty are becoming increasingly large due to changes in the business climate which is getting faster and more complex. The element of uncertainty is a business risk that can not be avoided, but must be managed through a mechanism called "Risk Management".

Risk management is a series of processes that constitute a system of risk management and protection of assets, property rights and company profits from possible losses due to risks.

Risk Management of PT Latinusa, Tbk. apply the principles and framework in accordance with ISO 31000: 2018, as follows:

1. Risk Management creates added value.
2. Risk Management is an integrated part of business processes.
3. Risk management is part of decision making.
4. Risk Management specifically handles uncertainty.
5. Risk Management is systematic, structured and timely.
6. Risk Management is based on the best information.
7. Risk Management is unique to its users (Tailored).
8. Risk Management is transparent and inclusive.
9. Risk Management is dynamic, repetitive and responsive to changes.
10. Risk Management must facilitate continuous improvement.

With the commitment to implement ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018, the Company undertakes a risk-based Integrated Management System, using the following approach:

1. There is a dedicated Company unit handling the risk management function, which is the IAU;
2. Integrate risk management into business processes across the organization;
3. Identify and manage risk factors faced by the Company in all of the Company’s structure and functions;
4. Measure the potential for the occurrence of risks based on historical data, experience, and judgment of risk owner across the entire Company;
5. Map out risk factors in each working unit as well as formulate strategies and mitigation plans for implementation; and
6. Evaluate the Quality Safety Health Environment Objective throughout the organization and measure the adequacy as well as the effectiveness of the risk management system The Company has identified important risk factors in business activities and formulated corresponding mitigation measures.