In implementing good corporate governance, there are three pillars of defense (three-line protection), which are the key to success in implementing internal control. The three pillars are:
- Internal control is the front line (1″” line of defense) to ensure that operational activities can be carried out effectively. The leadership of a work unit will mitigate the risk of various risks found by the work unit through the implementation of effective internal control and manage or maintain the risk is up to the limit agreed by management (risk appetite).
- Risk management as the second line of defense is a continuous and structured process to identify and assess risks, provide responses in the form of an action plan, and carry out a reporting process to management on risks that will affect the achievement of company goals.
- Internal audit as the last line of defense (3rd line of defense) is carried out by the Internal Control Unit (SPl) whose function is to ensure the effectiveness of the internal controls made by management and ensure that risk management and risk mitigation processes have been implemented effectively and efficiently so that the company’s goals are targeted can be achieved.
Please download the SPI Charter of PT SUCOFINDO at the following link SPI Charter SUCOFINDO