The Company places risk management as one of the main priorities in achieving an optimal balance between value creation in a business action and the risks faced. The Company regularly holds meetings to determine and analyze the level of risk related to business activities, existing business opportunities and working capital adequacy. The decisions of this Committee are translated into policies and guidelines in conducting business and operational activities. Sound risk management has proven to be effective in helping the Company mitigate the risks that exist in its operational activities. The Company routinely evaluates the implementation of Risk Management through risk monitoring, namely by looking at potential risks from self-assessment reports and risk profile reports whose implementation is coordinated with related divisions. The Company has established policies on several main risks that may occur and have a significant influence on the company's business continuity, including:

1.Risk of Weakening Purchasing Power

The Company has a main source of income from leasing building space for business premises. Where the purchasing power of the community is very influential on the interest of tenants to rent business space for business premises in the Mall. To overcome this risk, the Company has a fairly long lease period and provides supporting facilities and infrastructure provided, available services and attractive price offers in leasing business space such as tenants are given the first opportunity to participate in product exhibitions held by the Company. The Company will also carry out Health Protocols by conducting strict supervision so that visitors carry out the stages of the procedure properly, such as wearing masks, maintaining distance and also maximum capacity limits, reducing physical contact and touch, washing hands with soap or using hand sanitizers and also using electronic payments, so that the public is convinced that we are serious about fighting the transmission of Covid-19 in the Mal Pekanbaru.

2. Technology Change Risk

With the development of technology, various applications are available to make it easier for customers to buy necessities online. With the availability of the application, customers reduce the time to visit the mall to buy goods. The Company anticipates through online lines, by applying technology to business activities such as preparing applications that facilitate and accelerate the delivery of the latest information related to the Company's business. In addition, the Company also continues to strive to improve the satisfaction of the shopping experience by adding entertainment and culinary areas that can increase the level of visitor satisfaction

3. Risks Related to the Tourism Industry in Indonesia

The city of Pekanbaru, which is one of the big cities on the island of Sumatra and close to neighboring countries Malaysia and Singapore, makes Pekanbaru a destination for domestic and foreign tourists, where one of the most frequently visited destinations is Shopping Centers /Malls. To overcome these risks, the Company continues to strive to continuously innovate in marketing strategies, maintain building quality and always make refreshments such as adding entertainment and culinary areas, so that we continue to make our mall a shopping destination for visitors, both domestic and foreign tourists

4. Risks Related to Natural Disasters

Natural disasters in Indonesia have a direct impact on the property industry which also affects the shopping center business. The company anticipates the risk of natural disasters by having insurance for all company assets and risks that may occur with an adequate coverage value.

5. Risk of Business Competition in Central Business

A shopping center is a business that rents out building space for business premises, where a shopping center must provide a concept of an attractive place for people to visit, because the level of visits is very influential for prospective tenants who will rent building space. The presence of other shopping centers, with good concepts, will affect the number of visits which will automatically affect the interest of prospective tenants to make rentals. In general, in dealing with business risks, the Company regularly evaluates its strengths and weaknesses in order to formulate and create an effective strategy. The Company has also implemented and developed the concept of a mall known as the largest gadget center and fashion center in Pekanbaru and accompanied by increasing the number of visits by adding entertainment, performances and culinary areas