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Risk Management

Restock Tech has a robust risk management framework to identify, assess, and mitigate potential risks. This section describes our risk management processes, including risk identification, measurement, and monitoring mechanisms. The Company consistently implements risk management in every business activity. The implementation of risk management is also a concern for every organizational level in the Company. The Company’s risk management system is implemented to evaluate the effectiveness of the internal environment, goal setting, activity identification, risk assessment, risk management, control activities, information and communication, and supervision.

RISK FACTOR

A. MAJOR RISKS THAT HAVE SIGNIFICANT IMPACTS ON THE COMPANY'S BUSINESS PERFORMANCE

  • Technology development risks

B. BUSINESS RISKS THAT ARE MATERIAL, EITHER DIRECTLY OR INDIRECTLY THAT MAY AFFECT THE BUSINESS RESULTS AND FINANCIAL CONDITION OF THE COMPANY

  • Business competition risk
  • Risk of dependence on Subsidiaries
  • Risks related to termination of cooperation with partners and clients
  • Investment risk
  • The risk of failure of the Company and its Subsidiaries to comply with the prevailing laws and regulations in the business sector
  • Risk of limited Human Resources (HR)
  • Risk of serious infectious disease outbreaks in Indonesia or elsewhere

 

C. GENERAL RISKS

  • Risk of macro or global economic conditions
  • Risk of exchange rates of foreign currency
  • Risk of other country regulations or international regulations
  • Risk of lawsuits

 

D. RISK FOR INVESTORS

  • Stock liquidity risk
  • Risk of fluctuations of stock prices
  • The risk that the Company’s ability to pay dividends in the future will depend on its retained earnings, financial condition, cash flow and future working capital requirements
  • The risk of selling shares in the future may affect the market price of the Company’s shares
RISK MANAGEMENT

In dealing with the major risks to risk factors, the Company implements risk management to mitigate the risk factors as follows:

 
Technology development risks

To deal with the risk of technological developments, the Company and its Subsidiaries have a research and development division so that the Company and its Subsidiaries can continue to offer innovation in line with technological developments and changes in consumer behavior in the market.

 

Business competition risk

To mitigate this risk, the Company and its Subsidiaries maintain good relations with large companies from various technology sectors such as Microsoft, Google and Epson to maintain the Company’s and its Subsidiaries’ insights and capabilities in following developments.

 

Risk of dependence on Subsidiaries

To mitigate this risk, the Company can develop other profitable business activities, which refer to the purposes and objectives of the Company. By doing this, the Company can earn its own income so that it no longer depends only on the performance of the Subsidiary Company.

 

Risks related to termination of cooperation with partners and clients

To mitigate this risk, the Company and its Subsidiaries continue to improve good relations with each existing partner, and also continue to increase cooperation with new partners.

 

Investment risk

To mitigate this risk, the Company prioritizes analysis so that every investment can accelerate the growth of the existing business according to the contract.

 

The risk of failure of the Company and its Subsidiaries to comply with the prevailing laws and regulations in the business sector.

To mitigate this risk, the Company and its Subsidiaries appoint teams and/or consultants who have the competence to ensure that each line of business carried out has complied with the applicable laws and regulations.

 

Risk of limited Human Resources

The Company implements information/knowledge sharing and open communication for HR at various levels to ensure that project delivery is not disrupted if there is a change in HR. The Company also recruits the human resources regularly and periodically through educational programs to technology communities and universities. Furthermore, another approach is to acquire employees directly and conduct retention programs for existing human resources by implementing an incentive and reward system, as well as providing training, opportunities and clear career paths for employees of the Company and its Subsidiaries.

 

Risk of serious infectious disease outbreaks in Indonesia or elsewhere

The Company has a strategy in tackling serious infectious disease outbreaks in Indonesia or elsewhere to support the Company’s operational activities without being disrupted. The Company will always prioritize the infrastructure needed in this COVID-19 period by providing employees with adequate facilities for coordination purposes which were previously carried out offline. The company also requires to carry out regular COVID-19 tests and always implement health protocols as recommended. One time costs will occur due to infectious disease outbreaks but the Company’s operational activities will not be disrupted. The Company will also implement the same strategy with other serious infectious disease outbreaks in the future (if they occur)