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close to 400 pledges by Allstars to

reduce their single-use-plastic usage.

• Started a Green Paparazzi campaign

in Malaysia, which is being replicated

across Indonesia and the Philippines.

Environment-conscious Allstars

in these countries are identified

paparazzi-style and rewarded for

their green habits (eg using their own

containers to pack food, bringing their

own mugs for coffee, recycling in the

office, etc).

RISK & CRISIS MANAGEMENT

ICAO as well as national safety regulators

set out the requirements for airline safety

management systems, and we at AirAsia

build on these with our own stringent

internal standards and management

systems. We apply a systematic approach

to all risk disciplines, not just aviation

safety. We integrate aviation safety, health

and safety, aviation and cyber security,

environment and business resilience,

learning from collaboration and shared

experiences to improve our systems. Our

people play an important role in ensuring

our systems are able to identify risks and

that we are well-resourced to address

them.

We maintain an ‘informed culture’

of safety and security, where every

employee and contractor is aware of

the risks to our business and of his/her

responsibility to manage those risks, and

we encourage employees to highlight

actual or potential concerns.

The Enterprise Risk Framework was set

up to strengthen AirAsia’s capability to

manage inherent risks to our business

by providing a structured and systematic

platform to address the full spectrum of

our significant risks. The consolidated

and inclusive approach outlined by the

Enterprise Risk Framework considers the

combined array of risks as an interrelated

portfolio. This results in a combination of

bottom-up identification of operational

risks and top-down oversight and

management of the risks.

Business Continuity Management (BCM)

In an environment of evolving security

threats, our strategy is based on rigorous

predictive threat and risk analysis, which

has been designed to build a strong

and resilient business well-prepared to

respond to any crisis.

We set up a Business Continuity

Management (BCM) team to build our

organisational resilience and capability to

respond effectively should any event take

place that disrupts our operations. BCM

entails undertaking a business impact

analysis and establishing key processes

that form part of our response mechanism

to disruptive events.

In 2017, we also launched an ICT Disaster

Recovery Plan with two off-site business

recovery centres, while also developing

a Group Operational Response Plan that

outlines clear roles and responsibilities

during ICT-related disruptions. The teams

successfully stress-tested our Operational

system Disaster Recovery units and

reassessed the existing Operational BCP

physical site.

We also collaborated with the airport

authority to test the preparedness of

our Ground Handling team, mobilising

Network Management Centre (NMC) staff

to a recovery site built off-site business

recovery centres for Group Operations

(NMC & Customer Happiness).

Group Risk

From a Group risk perspective, areas

of particular focus in 2017 included

efforts to strengthen our Enterprise Risk

Management (ERM) Framework that

outlined risk assessments as a crucial

aspect of managing risk within the

organisation.

In 2016, Group Risk had conducted

risk assessment workshops with key

operational departments, namely

Operational Control Centre (OCC),

Commercial, ICT and Group Network

Planning, to facilitate the identification,

evaluation and management of each

function’s risks. In 2017, the risk

assessment exercise expanded to other

key functions within AirAsia, namely

Finance, People and Group Operations.

During the year, the ERM framework was

also revamped to ensure a more robust

system of capturing and mitigating risks.

In addition, emphasis was placed on the

quantification of risks to ensure that

the risk vs reward balance is properly

managed.

As we seek to keep improving our

sustainability performance, we welcome

feedback on our reporting and initiatives.

Please send your suggestions/comments

to the Green & Environmental Affairs

Department at

green@airasia.com

.

[ ]

AirAsia Group Berhad

SUSTAINABILITY

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