Enterprise Risk Management

The Board of Directors together with MRSGI Management continues to strengthen its internal control and audit system through the implementation of policies that ensure efficiency of operations, reliability of financial reporting, safeguarding assets, and compliance with laws and regulations.

Through the active leadership of the Audit and Risk Committee (ARC), the Company focuses on risk management, safety management, internal audit, control, and compliance. The objective was to manage or minimize risks that deter the Company's growth.

Risk Management

With the merging of Enterprise Risk Management team with Safety Management Team, the team was able to focus on the potential risks that could affect the company on the enterprise level. The risk & safety technical audit covered the following risk factors: security risk, reputational risk, operational risk on facility operational disruption, IT operational risk, regulatory risk, environmental & natural disaster risk, and fire risk.

The three previous identified major threats on the risk management perspective, namely: typhoons, earthquakes and fires, have less impact on the business operation of the company in 2023. This can be attributed to the low occurrence of typhoons & earthquakes across the country on the same year. On the other hand, fire risk was effectively brought down to a lower risk factor because of the robust implementation of fire safety program which includes daily safety inspection by the designated safety officer per store, maintenance management of the equipment and consistent trainings & in-house workshop of ERT members. With the active responses of ERT members whenever a near fire scenario occurs, the organization has proactively prevented any fire incident into developing into an actual fire.

Enterprise risk management will continue to collaborate with all stakeholders in order to further strengthen the risk profile of the company among others, in terms of cyber-security, e-commerce, strategic planning, business resiliency, etc.

Safety Management

After a successful roll-out of Project 0-1-2-3 Safety Excellence Program last 2022, Safety Management team commended the overall efforts of all MRSGI business locations because of their undying commitment to the safety program of the company in 2023.

Management continued to invest for the improvement of its facilities and equipment reliability in order to keep and enhance the fire protection system as well as placing high priority to fire safety program of the company. Various investments commenced such as replacement of aging fire pumps, generator sets, low voltage switch gear circuit breakers, new purchases of fire extinguishers, emergency equipment like the SCBA & other equipment as the company’s commitment to have a more reliable facility with better fire protection equipment.

Most of the external safety findings from our insurance partners, Bureau of Fire Protection (BFP) and other external safety and risk auditors were resolved with the capital invested projects.

Safety Management team also enhanced its training program by collaborating with various training resources. For the firefighting training enhancement, Safety Management team continued to tie up with the local BFP personnel in training the fire brigade team, search and rescue team and also the medical team. Other training organization such as the City Disaster Risk & Reduction Management has also been active in giving trainings to our ERT leaders and members. Our partnerships with Red Cross for the First Aid trainings were conducted to refresh and reinforce First Aid skills of our ERT-Medical team members.

With the consistent implementation of safety programs across all stores, the Company was able to prevent major accidents and incidents that could have disrupt the business operation.

Internal Audit

The Internal Audit Group (IAG) at MRSGI operates on a risk-based approach that primarily focuses on risk-involved activities and ensures that these risks are being managed within controllable levels. The IAG was created to assist Management in the oversight of store operation, internal control system, and compliance with laws and regulations. IAG helps MRSGI accomplish its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control, and compliance processes.

To ensure its independence and integrity, the IAG reports functionally to the ARC and administratively to the Chairman and CEO.

Internal Audit Group performs regular audit engagements in the following areas:

  • Store Operations
  • Supply Chain Management
  • Network Expansion
  • Merchandising and Marketing
  • Corporate Audit (e.g., Human Resource, Treasury and Finance, Leasing)

Internal Control

The Company’s Standard Operating Procedures (SOPs) remained the core of its Internal Control System. Several of these SOPs were developed, updated, and/or incorporated into MRSGI’s existing policies and operating manual through the leadership of the Systems and Procedures Group. These operating standards have, likewise, become the basis of the Internal Audit Group in reviewing compliance with Company policies and procedures.

Management is confident that the policies, procedures, and activities are within a controlled framework due to the effort of the Internal Audit Group and the Company SOPs.

Compliance Officer

To ensure adherence to corporate policies as well as external regulatory requirements, MRSGI’s Compliance Officer, Atty. Theresa Marie C. Puno-dela Peña, ensured that the Company remained compliant with all relevant laws, rules, and mandates of regulatory agencies and MRSGI’s Amended Manual on Corporate Governance. The Compliance Officer likewise advised and coordinated closely with the company officers and managers to ensure their compliance with their responsibilities to the shareholders and the general public.

Atty. Puno-dela Peña ensured that the Board of Directors and senior officers of the Company are compliant with its Corporate Governance-related policies namely: Amended Manual on Corporate Governance, the Guidelines on matters requiring Board of Directors, Shareholders, and Management Approval, Whistle-blowing Policy, Amended Policy on Related-Party Transactions, and Code of Conduct for Directors and Senior Management.