Page 41 - annual report AUCT 2025_Eng

Business Operation and Operating Results Corporate Governance Financial Statements Attachments
1. Risk factors on business operation
1.1 Risks Relating to Safety and Management of Assets Pending for Auction
The Company puts emphasis on taking care of assets deposited from suppliers within the
period specified by law or the specified conditions. Therefore, the Company is well aware of the main risks
that might affect assets, both from natural perils (fire and flood) and safety risks (loss or theft), so the
Company has specified concise and comprehensive risk management measures to build confidences that
the assets under its care and custody are well protected in the best possible way.
The Company’s Risk Management
The Company has fire prevention and suppression measures which specified that electrical
systems must be inspected, building and fuel storage must be in accordance with the safety standards
constantly, and firefighting equipment must be installed to cover all operating areas. Moreover, preparedness
of personnel must be focused through training and annual fire drills to ensure that the employees can
effectively suppress preliminary incidents in case of emergency. Risk diversification strategies have been
applied via a network of 44 operation centers networks and storage areas nationwide, which can help
manage storage areas and relocation of assets to safe areas immediately when any area encounters an
incident. For the head office, the Company has invested in the development of infrastructure to prevent
flooding systematically, such as construction of safety zones, elevation of building floors and installation of
large pumping systems including improvements of drainage systems to ensure continuity of operations
even during the critical times.
With regards to prevention of theft and loss, the Company has a concise security system,
by installing CCTV and usage of access control system for assets storage areas together with the employment
of external security company to perform duties 24 hours a day with clear agreement on indemnification of
damages in case of defective operations. Moreover, during the process of assets transportation, the
Company specified the carrier contractors must have the insurance policy during transportation that cover
liability of the contractors and the sub-contractor.
Moreover, the Company has prepared a Business Continuity Plan (BCP) to support
emergencies by specifying clear procedures on situation assessment, incident reporting system and line
of command, including back-up plans on assets relocation, as well as transfer of financial risks by preparing
fire insurance policy and industrial all risks insurance policy covering full values of the Company’s assets
and the customers’ assets (Replacement Cost).
บริิษััท สหการประมููล จำำากัด (มหาชน)
Union Auction Public Company Limited
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