Ceylon Petroleum Storage Terminals LTD (CPSTL) has unveiled another policy initiative to strengthen its governance process. As a company which is inheritably operating in a volatile and turbulent business environment, CPSTL leadership; the Chairman/Managing Director, Mr. Uvais Mohomad, has very prudently decided to establish a professional framework for Enterprise Risk Management function for CPSTL with effect from 01/11/2021.
Enterprise Risk Management (ERM) had been a long awaited policy initiative for CPSTL due to the fact that its primary business objective is to act as the custodian of bulk petroleum products of CEYPETCO and LIOC. In discharging the responsibilities of CPSTL, it is paramount that the risks are being precisely identified because establishing effective RISK mitigation strategies would ensure its objectives will not be disrupted by an unforeseen event. Furthermore, managing risks within a professional framework would lead to accrue numerous benefits to any organization, particularly one which operates in a highly inflammable environment similar to CPSTL.
In the context of CPSTL, the newly prepared Risk Policy will clearly define the responsibilities of the Board of Directors, Senior Management and each individual employee which will pave the way for a cultural shift in the organization. This is mainly because ERM policy will emphasis the fact that Risk Awareness and Risk Culture would be the platform of its success. The implementation of the ERM framework would require not only the managerial commitment but also the lower level staff contribution, which will create a participatory approach for risk mitigation.
Therefore, it can be envisaged that, with the current leadership of CPSTL, Mr. Uvais Mohomad who will have a strong business vision to successfully implement this project within the company, CPSTL would become the best example for other SoEs, in Sri Lanka, in terms of successfully implemented ERM framework in the government sector organizations.