risk management
The telecommunications sector faces significant challenges, chiefly the diminishing demand for voice services juxtaposed with an exponential increase in data consumption, a trend hastened by the recent pandemic. This rapid digital transition, propelled by disruptive technologies, redefines traditional revenue models and necessitates swift innovation among telecom providers.
In an increasingly saturated market, differentiation through unmatched service offerings becomes paramount. Concurrently, significant investments in infrastructure, rigorous data protection protocols and adherence to regulatory frameworks are non negotiable. Telecom enterprises must navigate this transformation by promptly adapting, broadening their service portfolios and delivering frictionless customer experiences to secure a sustainable competitive advantage. stc’s risk management is integral to its strategic framework, informing business planning and performance evaluation and embedding risk considerations into critical decision-making processes to maximize impact.
Enterprise risk management governance
The Board of Directors ensures the highest standard of corporate governance is maintained by regularly reviewing governance development best practices and making certain these are duly adopted. As a result, the Board has established the Board Risk Committee, which plays a key role in overseeing the implementation of the Enterprise Risk Management (ERM) framework, risk strategy and related risk management policies, as well as monitoring stc’s risk management system, reviewing the top risks and the management of those risks.
The risk management function is independent and separate from stc’s business groups and sectors; it has completed its first wave of measures this year as per the Board-approved risk strategy to uplift current practices and maturity.
Enterprise risk management framework
The ERM framework provides guiding principles for proactively managing business risks through a comprehensive and dynamic system designed to identify, assess, prioritize and mitigate risks effectively across stc operations. The ERM process is embedded within stc as this allows us to take a holistic approach and make meaningful comparisons to support the delivery of strategic objectives. Quarterly risk assessment is a core part of this process. The risk framework clearly defines roles and responsibilities and sets out a consistent end-to-end process for identifying and managing risks.
stc’s approach is continuously enhanced, enabling more dynamic risk detection, modeling of risk interconnectedness and leveraging data to improve risk visibility and responses. The attainment of ISO 31000 attestation further solidifies its commitment to industry-leading practices. A standard risk scoring methodology has been devised to provide context and ensure consistency in reporting and evaluating risks. The output from this process is consolidated to determine the principal risks and uncertainties for the organization.
stc’s approach is continuously enhanced, enabling more dynamic risk detection, modeling of risk interconnectedness and leveraging data to improve risk visibility and responses. The attainment of ISO 31000 attestation further solidifies its commitment to industry-leading practices. A standard risk scoring methodology has been devised to provide context and ensure consistency in reporting and evaluating risks. The output from this process is consolidated to determine the principal risks and uncertainties for the organization.
Risk management highlights
In the past year, stc has achieved significant milestones in its journey toward excellence in risk management, reinforcing its position as a forward looking and resilient organization. A key achievement was the comprehensive review and re-assessment of stc’s risk appetite. This effort ensured alignment with evolving strategic priorities and established a robust foundation for governing risk-taking activities, enabling more informed and balanced decision-making at all levels.
To strengthen risk oversight, stc introduced automated monitoring indicators across all key risks. This advanced mechanism provides real-time insight into risk status, allowing the organization to anticipate potential threats and respond proactively to emerging challenges. Complementing these efforts, stc obtained ISO 31000 certification for enterprise risk management and ISO 27001 certification for information security, highlighting its adherence to international best practices and its dedication to maintaining the highest standards of governance and security.
Recognizing the critical role of a strong risk culture, stc conducted extensive training sessions and awareness events across the organization. These initiatives have fostered a heightened understanding of risk management principles and have begun to deliver tangible improvements in internal processes, enhancing collaboration and accountability.
Finally, stc has continued to focus on expanding its coverage of risks, ensuring a comprehensive understanding of exposures across its operations. Rigorous efforts were made to strengthen existing controls and implement robust mitigation strategies, further securing the organization against an increasingly complex and dynamic risk environment. These achievements collectively reflect stc’s unwavering commitment to safeguarding its future while driving sustainable growth.
To strengthen risk oversight, stc introduced automated monitoring indicators across all key risks. This advanced mechanism provides real-time insight into risk status, allowing the organization to anticipate potential threats and respond proactively to emerging challenges. Complementing these efforts, stc obtained ISO 31000 certification for enterprise risk management and ISO 27001 certification for information security, highlighting its adherence to international best practices and its dedication to maintaining the highest standards of governance and security.
Recognizing the critical role of a strong risk culture, stc conducted extensive training sessions and awareness events across the organization. These initiatives have fostered a heightened understanding of risk management principles and have begun to deliver tangible improvements in internal processes, enhancing collaboration and accountability.
Finally, stc has continued to focus on expanding its coverage of risks, ensuring a comprehensive understanding of exposures across its operations. Rigorous efforts were made to strengthen existing controls and implement robust mitigation strategies, further securing the organization against an increasingly complex and dynamic risk environment. These achievements collectively reflect stc’s unwavering commitment to safeguarding its future while driving sustainable growth.
