Risk Management and Strategy

Group Company Structure Management and Return on Investment Risk Management and Strategy

Risk Management and Strategy

Our projects are not just about "profit," but also about "sustainability" and "security."

Risk Management & Strategic Mitigation

It is divided into three parts as follows:

Part 1: Foreign Exchange Risk Management - Currency Risk Management Because the project involves capital procurement in foreign currency but operates in Thailand, we employ a "Natural Hedge" strategy and cash flow control as follows:

  • Currency Conversion Strategy: As soon as funds are transferred into Thailand, the company will convert the assets into Thai baht and manage them through highly stable assets such as government bonds or public sector debt instruments to lock in the principal value, preventing fluctuations in exchange rates throughout the contract term.
  • THB Denominated Principal: Determining the debt value and interest obligations in Thai baht, to align with the project's primary income (Matching Fund), helps eliminate the risk of revaluation.
  • Interest Coverage Security: Interest and principal repayments will be made in Thai Baht, based on the exchange rate at the start of the investment, to ensure transparency and verifiability of the project's cash flow.
  • Intercompany Loan Structure: Loans between a foreign parent company and a Thai company will utilize a fixed exchange rate based on the contract date and comply with the Revenue Department's regulations. This ensures accounting stability and protects against fluctuations in the liability value throughout the project's lifespan.

Part 2: Principal Risk Protection - Principal Protection The core of the project is to preserve the investors' principal.:

  • Asset-Backed Security: 100% of the principal will be tied to assets guaranteed by the Thai government (Government Savings Bank lottery tickets), which have the lowest default risk in the country.
  • Legal Shield: Utilizing a leading law firm (such as NJORD and top attorneys in Thailand) to draft the bond agreement ensures that investors' rights to access collateral are clear and enforceable in accordance with international law.

Part 3: Operations Management Strategies - Operational Strategy

  • Staged Development: Project development will be divided into phases to ensure cash flow management aligns with market demand and allows for strategic adjustments based on economic conditions.
  • Expert Partnership: We work with specialists in every field, from wellness management to financial engineering, to mitigate the risk of mismanagement.