FAR EASTERN UNIVERSITY-MANILA

Institute of Accounts, Business, and Finance

Department of Accountancy and Internal Auditing

CASE STUDY NO. 3 – Risk Management

In Partial Fulfillment of the Requirements for ACT1110 – Governance, Business Ethics,

Risk Management, and Internal Control
1st Semester, School Year 2024-2025

By:
Banayos, Triscyanne Erich S.
Castillo, Farlene Ann May Z.
Cruz, Princess Julia, E.
Silva, Justin Marc C.
 2024
I. Introduction ( triscyanne )
There is a significant phone company in the Philippines called Globe Telecom.
It's known for having the best internet and cell phone services. Since it commenced in
1935, the business has grown significantly. It has mostly been able to execute this by
changing with developments in order to meet the needs of its customers and the industry
as a whole. Globe has many services, including cell phone plans (both prepaid and
regular), home internet, business solutions, and digital goods. Consumers in the
Philippines esteem the business greatly because it cares for and values its clients. It took
Globe a lot of work over the last few months to add new services to its digital
environment, such as online shopping, banking, and entertainment. To meet its growing
needs and provide a bigger range of services, Globe needs to connect with businesses
both inside and outside of the United States. To improve speed and dependability, the
business has spent money on new technologies such as 5G networks. Globe's business
philosophy is based on knowing it has moral and environmental responsibilities. Being
socially responsible and taking care of the world are important to the company, so they
only back projects that share these ideals. Globe has started certain projects to help local
businesses grow, refine recycling, and lower the environmental impact of the business.
Globe is very successful in the phone business because it always works to make
customers happy and make technology better. Globe Company always considers new
goods and concepts to stay ahead in the rapidly changing phone business. Business values
new ideas, great customer service, while carrying out the optimal action by society.

At Globe Telecom Company, risk management and evaluation are two of the most
important aspects. "Competition" is a term that is used to describe the level of rivalry that
exists in an industry that is extremely competitive, such as the telecoms sector. There are
a number of factors that offer significant risks to the earnings of firms, including cutting-
edge technologies, shifting regulations from the government, and uncertain market
circumstances. Globe remains ahead of the competition in its industry by proactively
searching for dangers and adhering to rules that assist in reducing such risks. Due to this,
the procedures are operating without any problems. Globe is able to preserve the trust of
its consumers and ensure the safety of its business by implementing stringent risk
management. Problems with data privacy and service quality may be extremely
detrimental to the image of a firm, particularly in an industry that places a high value on
the loyalty of its customers. The fact that Global places such high emphasis on risk
management may result in a variety of advantages, including improved protection, a more
expedient resolution of issues, and compliance with the law. Using this strategy for an
extended period of time helps the company maintain its stellar reputation and the trust of
its customers, which ultimately results in increased customer loyalty. Considering that
Globe is able to identify and mitigate potential risks, the company is in a better position
to capitalize on opportunities. For those working in the field of telecommunications, both
people and technology are constantly evolving. Despite the fact that new technologies
such as 5G and digital services present potential, the company must be aware of the
dangers that are associated with these technologies and be prepared to deal with them.
There is a possibility that the beginning could assist the company in better adapting to
changes in the market and in what client's demand. The strategic planning and decision-
making processes across all domains would be considerably improved by the
implementation of a comprehensive risk management approach. By incorporating risk
analysis into Globe's business strategy, the company will be able to make better use of its
resources, fund new initiatives with greater assurance, and deal with issues in the future
in a more efficient manner. Globe is able to maintain its business operations and increase
the trust of its employees by being aware of all the hazards. For the company to thrive in
such a dynamic and competitive industry, it is necessary for it to survive.

Globe Telecom Company uses the risk management process to identify, assess,
and manage any risks endangering its long-term goals. This methodology offers a
disciplined method of risk control. This essay offers necessary reading on proactive risk
management in a field where rules are continually changing, and technology is
developing at a fast speed. Providing important information to Globe's staff and
executives helps to create a culture of risk consciousness and responsibility. One can
 achieve this by clearly defining the risk management techniques. Besides, this offers
Globe Telecom's decision-makers a structure. Decision-makers should be familiar with
financial, operational, regulatory, and reputational hazards to the company. A
comprehensive risk analysis helps management to better match actions with the risk
tolerance of the company and strategic goals. This openness simplifies stakeholder
contact and helps coordinate cross-team and departmental risk management. The book
emphasizes especially the need to follow industry norms. Regulators often mandate that
telecommunications firms follow risk management strategies. Globe Telecom records a
risk management plan in order to keep compliance and moral business practices. This
assurance is crucial to maintain consumers' faith and help to avoid fines from authorities.
Finally, this paper seeks to improve Globe's standing as a creative and ethical telecom
company. Modern companies' stakeholders value corporate governance and sustainability
more highly than anything else. Among the stakeholders are government agencies,
customers, and investors. The article describes Globe's risk-management approach,
therefore attesting to its commitment to these values. Globe has excellent stakeholder
ties, is positioned in the telecoms sector, and uses proactive risk management to build
investor trust.

III. Common Risks Faced by Philippine Listed Companies (farlene)

A. Market Risks
1. Economic cycles and market volatility

During periods of economic growth, demand for telecommunications services typically

increases as businesses expand and consumers have more disposable income. Conversely,
during economic downturns, demand may decrease as businesses cut costs and
consumers reduce spending. The telecommunications industry can be subject to market
volatility due to factors such as regulatory changes, technological advancements, and
competitive pressures. For example, the introduction of new technologies or services by
competitors can impact Globe Telecom's market share and profitability.
 2. Foreign exchange fluctuations for

Foreign exchange fluctuations can significantly impact Globe Telecom's financial

performance, especially since the company operates internationally and deals with
multiple currencies. Changes in exchange rates can affect the company's revenue and
costs. For example, if the Philippine peso depreciates against the US dollar, revenues
from international operations may increase when converted back to pesos, but the cost of
imported equipment and services may also rise. Fluctuations in exchange rates can
impact on the company's financial statements. Globe Telecom must convert its foreign
currency transactions to its reporting currency (pesos), and changes in exchange rates can
lead to gains or losses.

3. Interest rate risks

Interest rate risks can significantly impact on Globe Telecom's financial performance,
especially given its substantial debt levels. When interest rates rise, the cost of servicing
debt increases, which can reduce the company's profitability. Globe Telecom has a
significant amount of debt, and higher interest rates can lead to higher interest expenses.
Changes in market conditions, such as economic downturns or shifts in monetary policy,
can also influence interest rates. Globe Telecom needs to monitor these conditions
closely to manage its interest rate risks effectively.

B. Financial Risks
1. Liquidity risks

Liquidity risks for Globe Telecom can arise from several factors, including its ability to
meet short-term financial obligations and manage cash flow effectively. Globe Telecom
needs to ensure it has sufficient cash flow to meet its short-term liabilities, such as debt
repayments and operational expenses. Any disruption in cash flow can impact on its
liquidity position. The company's ability to access financing from banks and the bond
market is crucial for maintaining liquidity. While Globe Telecom has strong access to
local banks and the retail bond market, its unrestricted cash balance may not always be
sufficient to cover short-term maturities. Economic downturns, such as the one caused by
the COVID-19 pandemic, can affect customer spending and payment cycles, leading to
delays in cash collection and impacting liquidity. Globe Telecom's risk management
practices and strategies, such as maintaining a solid financial position and hedging
against currency and interest rate risks, help mitigate these liquidity risks

2. Credit risks

Credit risks for Globe Telecom can arise from several factors, including its debt levels,
market competition, and economic conditions. Globe Telecom has a significant amount
of debt, which can increase its credit risk. Higher debt levels mean higher interest
expenses, which can impact on the company's profitability and cash flow. The entry of
new competitors, such as Dito Telecommunity, can intensify competition and potentially
impact Globe Telecom's market share and revenue. Increased competition can lead to
price wars and reduced profitability.

3. Capital structure risks

Due to its substantial debt load, Globe Telecom may be more financially vulnerable. The
profitability and cash flow of the business may be impacted by greater interest costs
associated with higher debt levels. The company's borrowing costs and capacity to raise
cash may be impacted by its credit ratings. A credit rating drop can affect investor
confidence and raise borrowing costs.

C. Operational Risks
1. Supply chain disruptions

Supply chain disruptions can significantly impact Globe Telecom's operations, especially
given its reliance on global networks for equipment and services. Disruptions in the
global supply chain, such as those caused by the COVID-19 pandemic, can lead to delays
in the delivery of critical components and equipment. This can affect the company's
ability to maintain and expand its network infrastructure. lobe Telecom works with
numerous vendors and suppliers, many of which are based in the Philippines. Disruptions
in their operations, whether due to natural disasters, political instability, or other factors,
can impact Globe Telecom's supply chain. The company is also focusing on digital
transformation to enhance supply chain efficiency. By leveraging technology, Globe
Telecom aims to improve logistics, inventory management, and overall operational
efficiency.

2. Technological risks

As a telecommunications company, Globe Telecom is a prime target for cyberattacks.

These threats can compromise customer data, disrupt services, and damage the company's
reputation. The telecommunications industry is constantly evolving with new
technologies and services. Keeping up with these advancements requires continuous
investment and innovation, which can be challenging and risky. Technological failures or
outages can disrupt services and lead to customer dissatisfaction. Maintaining and
upgrading infrastructure to prevent such issues is crucial. protecting customer data and
ensuring privacy is a significant concern. Any breach in data privacy can lead to legal
issues and loss of customer trust.

3. Regulatory and compliance risks

Regulatory and compliance risks for Globe Telecom can arise from various factors,
including changes in government policies, industry regulations, and legal requirements.
Changes in government policies, such as those related to telecommunications, taxation,
and foreign ownership, can impact Globe Telecom's operations and financial
performance. The company must stay updated on these policies and adapt accordingly.
The telecommunications industry is subject to various regulations, including those related
to spectrum allocation, consumer protection, and data privacy. Compliance with these
regulations is essential to avoid penalties and maintain a good standing with regulatory
bodies. Globe Telecom must comply with legal requirements, such as those related to
corporate governance, anti-corruption, and environmental sustainability. Non-compliance
can lead to legal issues and damage the company's reputation.
D. Reputational Risks

1. Brand perception

Globe Telecom enjoys a positive brand perception among Filipinos. According to a

survey conducted by The Method Research in August 2021, 36.1% of respondents
chose Globe as their favorite telecommunications provider in the Philippines. This was
higher than other providers like Smart, TNT, PLDT, and Dito1. The survey highlighted
that Globe was the preferred telco in all regions of the Philippines, including Luzon,
Visayas, and Mindanao. Globe's commitment to superior customer service and its
efforts to meet customer needs, especially during challenging times like the pandemic,
have contributed to its strong brand perception. The company has also expanded its
offerings beyond traditional telecom services to include fintech, HealthTech, AdTech, e-
commerce, and other digital solutions, which have further enhanced its brand image.

2. Public relations issues

Globe Telecom has faced several public relations issues over the years. There have been
instances where Globe Telecom's network experienced outages, leading to customer
dissatisfaction and negative media coverage. These outages can disrupt services and
impact customer trust. Globe Telecom has received complaints about its customer
service, including long wait times and unhelpful support staff. Addressing these issues is
crucial for maintaining a positive brand image. The company has faced scrutiny from
regulatory bodies, such as the National Telecommunications Commission (NTC), over
various matters, including compliance with industry standards and fair competition
practices. Globe Telecom continues to work on addressing these issues and improving its
public relations efforts to maintain a positive brand image and customer satisfaction.

3. Corporate governance risks

 Globe Telecom must comply with various regulations related to telecommunications,
data privacy, and corporate governance. Non-compliance can lead to legal issues, fines,
and damage to the company's reputation. Effective internal controls are essential for
preventing fraud, ensuring accurate financial reporting, and maintaining operational
efficiency. Weak internal controls can expose the company to financial risks and
operational disruptions. Maintaining high ethical standards is crucial for building trust
with stakeholders. Any lapses in ethical behavior, such as corruption or unethical
business practices, can harm the company's reputation and lead to legal consequences.
Strategies to recognize, evaluate, and reduce these corporate governance risks are part of
Globe Telecom's enterprise risk management framework, which guarantees the
company's continued resilience and competitiveness in the market.

IV. Risk Profile of the PSE Listed Company (Cruz)

A. Analyze its risk profiles using SWOT.
a. Strengths
One of Globe Telecom’s main strengths is its strong brand reputation. The
company is widely recognized as a reliable telecom provider in the Philippines, with a
significant market share. It has a loyal customer base due to its consistent delivery of
quality services, particularly in mobile and broadband connections.
Another key strength is its commitment to innovation. Globe has consistently
invested in improving its infrastructure, such as upgrading to 5G networks and
enhancing its broadband services. The launch of GCash, a mobile wallet that has
become one of the most widely used fintech platforms in the Philippines,
demonstrates Globe’s ability to diversify its offerings and stay ahead in the digital
economy. These technological advancements solidify Globe’s position as a forward-
thinking company in the telecom sector.
Strategic partnerships also strengthen Globe’s competitive edge. The company
has collaborated with global tech giants like Google, Facebook, and Alibaba to
enhance its digital services. These partnerships not only improve the quality of its
offerings but also help Globe stay relevant in an increasingly interconnected digital
ecosystem.

b. Weaknesses
Despite its successes, Globe Telecom struggles with several internal
weaknesses that hinder its growth. Network congestion is a persistent issue,
especially in highly populated areas like Metro Manila, resulting in slow internet
speeds and dropped calls. Customers often complain about these service lapses,
which can negatively affect the company’s reputation. Additionally, Globe’s pricing
strategy is a concern, as its services are relatively expensive compared to its
competitors. This limits its appeal to price-sensitive customers, particularly in rural
areas where affordability is critical.
Another weakness is its dependence on the Philippine market, which makes
the company vulnerable to local economic and regulatory changes. Globe’s lack of
significant international operations restricts its ability to diversify risks and revenue
streams. Furthermore, the company’s customer service has occasionally been
criticized for slow response times and limited problem resolution. Addressing these
weaknesses is crucial for Globe to support its leadership in the telecommunications
sector.

c. Opportunities
The growing demand for internet connectivity and digital services presents
significant opportunities for Globe Telecom. As more Filipinos rely on online
platforms for work, education, and entertainment, Globe can expand its broadband
and mobile data services to meet these needs. The fintech sector also offers vast
potential, with GCash already emerging as a dominant mobile payment platform. By
expanding into digital loans, savings accounts, and investment options, Globe can
solidify its position in the fintech market. Additionally, rural connectivity remains an
untapped market, and investing in these underserved areas could provide Globe with
new revenue streams and enhance its market share.
 The increasing adoption of cloud computing, e-commerce, and digital content
also presents new opportunities for Globe. Collaborating with local and international
businesses in these sectors could help the company diversify its offerings. Moreover,
government initiatives aimed at improving the country’s digital infrastructure may
provide additional support for Globe’s expansion efforts. By leveraging these
opportunities, Globe can continue to grow while contributing to the nation’s digital
transformation.

d. Threats
Globe Telecom faces intense competition from major rivals such as Smart
Communications and DITO Telecommunity. These competitors are continually
improving their services and offering competitive pricing, putting pressure on Globe
to keep its market position. Regulatory challenges are another concern, as stricter
government policies on pricing and service quality could affect operations. (Frost &
Sullivan, 2022). Additionally, the rapid pace of technological advancement requires
Globe to stay ahead in adopting emerging technologies like artificial intelligence and
advanced cybersecurity measures. Not keeping up with these innovations could result
in a loss of competitive advantage.
Global economic uncertainties and inflation also pose threats, as they may
affect consumer spending and demand for premium services. Customers who
prioritize affordability over quality could shift to cheaper alternatives, impacting
Globe’s revenue. Furthermore, natural disasters, which frequently occur in the
Philippines, can disrupt operations and damage infrastructure, posing more risks.
Addressing these threats proactively is essential for Globe to sustain its leadership in
the dynamic telecommunications industry.

B. Identify the most significant risks they face

We all know that Globe Telecom is one of the leading communication
providers in the Philippines and they operate in a dynamic and rapidly evolving
landscape that presents significant risks. These risks can substantially impact the
company’s operations, financial performance, and strategic objectives. Understanding
these challenges is crucial for the organization to develop effective strategies for risk
management and to ensure sustained growth in a competitive environment.
One of the primary risks faced by GLOBE is regulatory and compliance risk.
The telecommunications sector is highly regulated, with a complex tapestry of local
and national laws that govern pricing, service quality, and consumer protection.
Governments frequently modify regulations, creating an unpredictable environment
for companies like GLOBE. Non-compliance with these regulations can result in
severe consequences, including hefty fines, operational restrictions, and damage to
the company's reputation. Moreover, new regulatory requirements often necessitate
significant adjustments to business practices and technological investments, adding
pressure to the operational framework.
In addition to regulatory challenges, GLOBE is also vulnerable to
technological advancements and cybersecurity threats. The telecommunications
industry is characterized by rapid innovation, requiring substantial investment in
infrastructure and cutting-edge technologies. To remain competitive, GLOBE must
keep pace with developments such as 5G, the Internet of Things (IoT), and advanced
data analytics. Failing to embrace technological change can lead to a loss of market
share and competitive edge. Concurrently, the increasing reliance on digital services
heightens the risk of cyberattacks. GLOBE must invest in comprehensive
cybersecurity measures to safeguard its networks and protect customer data; a data
breach could result in financial loss, regulatory penalties, and a significant erosion of
customer trust.
Market competition further exacerbates the challenges faced by GLOBE. The
Philippine telecommunications industry is teeming with competition from both
established players and new entrants, prompting a battle for market share. This
competitive landscape often leads to price wars and compressed margins, compelling
GLOBE to enhance its service offerings continually and invest in customer
engagement while managing operational costs. The ability to differentiate itself in
such a crowded market is crucial for GLOBE to maintain its standing and
attractiveness to consumers.
GLOBE also contends with economic factors that can influence its business
operations. Economic conditions in the Philippines play a significant role in shaping
consumer spending patterns on telecommunications services. Economic downturns
can lead to reduced discretionary spending, affecting revenue from internet
subscriptions and other services. Factors such as inflation, currency fluctuations, and
shifts in government policy may also impact consumer behavior and corporate
investment decisions. To navigate these economic challenges successfully, GLOBE
must adapt its strategies to align with the broader economic landscape.
Moreover, supply chain disruptions present another critical risk for GLOBE.
The company relies on a complex supply chain for essential network equipment,
technology, and customer devices. Disruptions caused by global crises—such as
pandemics, geopolitical tensions, or natural disasters—can result in delays, increased
costs, and unsatisfied customer demand. Establishing robust supply chain strategies
that emphasize resilience, and flexibility is vital for GLOBE to ensure continuity and
reliability in its operations.
Shifting consumer behaviors and preferences pose an additional risk that
GLOBE must manage. Today’s consumers increasingly seek personalized, faster, and
more innovative services, placing pressure on telecommunications providers to adapt
quickly. Failure to respond to these changing demands can result in customer attrition
and diminished market relevance. GLOBE needs to invest in understanding consumer
trends and leveraging data analytics to tailor its offerings effectively, ensuring they
meet the evolving needs of their customer base.
Finally, the capital-intensive nature of the telecommunications industry
amplifies risks related to financing and debt management. GLOBE must navigate
substantial financial commitments required for continual infrastructure investments
and technological upgrades. The need for effective financial management is
paramount, especially in times of economic volatility or rising interest rates. High
 levels of debt can lead to financial strain, thereby hindering GLOBE’s ability to fund
growth opportunities and potentially destabilizing the organization.

C. Examples of how these risks have impacted the companies

The significant risks faced by telecommunications companies like GLOBE
Telecom have increasingly manifested in ways that illustrate their potential impacts
on operations and profitability. Several instances highlight how these risks can
influence a company's performance.
In 2020, the Philippines underwent significant regulatory changes that
affected telecommunications providers. For instance, the National
Telecommunications Commission (NTC) issued guidelines aimed at enhancing
service quality and expanding coverage in underserved areas. While these regulations
aim to improve service for consumers, they often require substantial investments from
companies like GLOBE to meet heightened standards. The company faced pressures
to allocate resources for upgrading infrastructure, which could strain its financial
position and impact short-term profitability.
In 2021, GLOBE experienced a cybersecurity incident that exposed sensitive
customer data. While the company swiftly responded to the breach, the incident
underscored the vulnerabilities inherent in rapidly evolving digital landscapes. Even
though GLOBE managed to mitigate immediate damages, the breach resulted in
reputational harm and necessitated increased expenditure on cybersecurity measures,
diverting funds from other strategic initiatives.
The entry of new players, such as DITO Telecommunity, in the Philippine
market in 2020 intensified competition and triggered price wars. GLOBE had to
respond by slashing prices and enhancing promotional offers to retain customers,
leading to a decline in average revenue per user (ARPU). This competitive pressure
not only affected GLOBE's revenue but also increased marketing costs, which could
harm its long-term financial health.
Lastly, the economic downturn caused by the COVID-19 pandemic
highlighted the vulnerability of consumer spending. Many customers faced financial
 constraints, leading to decreased subscriptions and churn rates for GLOBE. The
company had to adapt by offering flexible payment plans and promotions to retain
customers, impacting its cash flow in the short term.

IV. Risk Management Strategies SILVA

A. Identification and Assessment
1. Risk identification(qualitative.) – lists all risks according to risk universe
Risk Categories for Globe Telecom, Inc. (GLO)

1. Market Risks:
a. Foreign Exchange Fluctuations: Exposure to currency exchange rate fluctuations
impacting financial results.
b. Economic Cycles and Market Volatility: Vulnerability to economic downturns
and market instability affecting business performance.
c. Interest Rate Risks: Risks associated with changes in interest rates impacting
borrowing costs and financial stability.
2. Reputation Risks:
 a. Negative Publicity: Threats to reputation due to negative media coverage or
public perception.
b. Service Failures: Risks associated with service disruptions or quality issues
impacting customer trust.
c. Ethical Issues: Risks stemming from ethical lapses or misconduct damaging
corporate image and stakeholder trust.
3. Operational Risks:
a. Internal Processes: Risks arising from inefficient or flawed internal processes
affecting operational efficiency.
b. System Failures: Risks related to IT system failures or cybersecurity breaches
disrupting business operations.
c. External Events: Risks from external events like natural disasters or supply chain
disruptions impacting operations.
4. Regulatory Risks:
a. Compliance Changes: Risks associated with changes in regulations impacting
business operations and strategies.
b. Legal Violations: Risks of non-compliance with existing laws leading to fines,
penalties, or legal actions.
c. Policy Uncertainty: Risks from uncertain regulatory environments impacting
decision-making and investments.

2. Risk assessment – assign level of risks and related prioritization – Output will be
a heatmap. (HEATMAP)

B. Mitigation Strategies for Globe Telecom, Inc.

1. Financial Hedging Techniques:
a. Implement a variety of financial hedging techniques, such
as forward contracts and options, to mitigate currency exchange risks
and interest rate fluctuations effectively.
2. Operational Risk Controls:
 a. Develop and enforce strict operational risk controls, including regular
audits and compliance checks, to ensure the reliability and security of
Globe Telecom's services.
3. Insurance and Reinsurance:
a. Utilize a comprehensive insurance and reinsurance strategy to protect
against business interruptions, cybersecurity threats, and regulatory
changes effectively.

C. Monitoring and Reporting

1. Risk Monitoring Systems:
a. Implement an Integrated Assurance Framework (IAF) to monitor risks
comprehensively across all operational areas and ensure alignment with
business objectives (Tess, 2023).
2. Reporting Mechanisms to Stakeholders:
a. Establish transparent and regular reporting mechanisms to communicate
risk management activities and outcomes to stakeholders, providing
insights into the effectiveness of risk mitigation strategies.

D. Integration with Corporate Strategy

1. Aligning risk management with business objectives
a. Integrate risk management practices into Globe Telecom's business
objectives through the use of the Integrated Assurance Framework (IAF) to
ensure that risk considerations are embedded in strategic decision-making
processes.
2. Board and management oversight
a. Provide Board and management oversight by using the Integrated
Assurance Framework (IAF) to monitor and evaluate risk management efforts,
ensuring that they are in line with corporate strategy and objectives.
V. Comparison with International Best Practices
A. Review global standards versus local standards in risk management
Globe Telecom integrates global risk management standards while adapting to
local regulatory frameworks to maintain operational efficiency. Internationally, the
company adheres to the ASEAN Corporate Governance Scorecard (ACGS) and
OECD principles, emphasizing transparency, sustainability, and proactive risk
governance. These standards guide practices like disaster recovery, cybersecurity
protocols, and environmental sustainability measures. Locally, Globe complies with
Philippine regulations, including mandates from the SEC and DICT, focusing on data
privacy, telecommunications infrastructure, and consumer protection. This alignment
of global and local standards allows Globe to effectively address risks in a dynamic
regulatory and business environment while ensuring stakeholder trust and
compliance.
Globe’s risk management practices emphasize proactive measures, such as its
Business Continuity Management Plan, which accounts for workforce safety, supply
chain disruptions, and infrastructure resilience. These initiatives reflect global
standards in anticipating and mitigating risks to ensure uninterrupted service. The
company’s policies go beyond legal requirements, incorporating international
frameworks like the UN Global Compact, which enhances its adaptability and
preparedness. Locally, Globe adopts measures aligned with cultural and regulatory
expectations, such as fostering stakeholder engagement through transparent reporting
and inclusive governance practices. This dual focus enables the company to sustain
high performance while contributing to both global and national development goals.

B. Evaluate how Philippine practices align or differ

Globe Telecom demonstrates alignment with international risk management
standards, particularly in corporate governance and sustainability. For instance, its
adherence to the UN Sustainable Development Goals (SDGs) and its recognition by
the Good Index reflect a global focus on environmental and social governance.
However, its operations also cater to unique Philippine challenges, such as disaster
preparedness in a typhoon-prone region and extending digital services to underserved
communities. Initiatives like the Digital Thumbprint Program, which promotes
responsible online behavior, highlight how Globe customizes international best
practices to local needs. This blend of global alignment and local innovation ensures
that Globe remains competitive while addressing the specific demands of its
operating environment.
While Globe aligns with international benchmarks, it addresses local
complexities through targeted programs and investments. Its commitment to
sustainability is clear in initiatives like reducing single-use plastics, e-waste
management, and the adoption of green technologies. These efforts are tailored to the
Philippines' environmental challenges while aligning with global environmental
standards. Globe also invests in disaster resilience, installing climate-adaptive
infrastructure to keep network stability during extreme weather events. Such localized
practices prove how Globe effectively bridges international best practices with
national priorities, creating sustainable value for stakeholders and the communities it
serves. In addition, integrating global best practices while remaining adaptable to
local regulatory frameworks, Globe Telecom positions itself as a forward-thinking
organization that prioritizes operational efficiency, transparency, and proactive risk
management practices.