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We now focus on the implementation and use of ERM to assess the risk-adjusted performance of a portfolio of foreign investments and to make key investment decisions at Astro Overseas Limited (AOL), the company responsible for all international investments (subsidiaries and joint ventures).

AOL's board of directors is very experienced and oversees the company's risk management framework. The board of AOL reiterates regularly that risk management is as important as maximizing profitability, and they should both be given equal weight in establishing investment performance benchmarks. AOL's objective is to achieve investment returns that are considered reasonable for markets in which it invests and the stage at which the investment is in its life cycle and risks for the investments. It looks at the long-term success of these investments, the risks of these companies over time and not necessarily to obtain short-term gain. While the board of directors is cognizant of ERM framework and methodology, they are also mindful that the approach to its implementation varies from one investment to another depending on the size and scale of each business. In this respect, influence of the investee company's board and audit committee plays an important role to ensure the process is successfully implemented. Senior management needs to fully understand and appreciate that although the process is a little provocative, it is value adding and has the potential to create a more robust business. Also, for investments which are smaller, resources and talent may be limited and there is a need for AOL to extend assistance to these investee companies to implement and manage the program until such time the investee company has adequate resources to do it on their own.

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