Risk Management

AWC realizes and gives precedence to sustainable risk management across the organization, from enterprise level to operational level in every business units. A risk and crisis management system was established to ensure that the AWC will be able to continuously and effectively determine risks and opportunities for AWC, as well as define appropriate strategy and mitigation plan to reduce probability and/or loss to be within acceptable level and/or to take advantage of additional business opportunities.

AWC has established the Enterprise Risk Management Framework according to the international standard of The Committee of Sponsoring Organizations of the Treadway Commission or COSO Enterprise Risk Management 2017. AWC applied the framework across the organization with the Risk Management Policy enforced on all employees.

Risk Governance

Risk Factors

AWC and its subsidiaries are the owner of various real estate businesses which cover Hospitality Business, Retail and Commercial Building Business and mixed-use properties. In business operation, AWC is fully aware that there are certain risks which may have negative impact on the Company’s businesses, financial conditions, performance results, and the Company’s future prospects. Hence, AWC constantly analyzes and assesses all potential risks, both internal and external, covering all business groups, as well as developing an effective mitigation actions to minimize the impact of identified risks and allow us to achieve the goals according to our strategies and direction. AWC considers key risks as those that could cause negative impact to the AWC’s business and discloses in the Annual Report. Below is an example of identified key risks

Besides identified key risk, AWC also identified emerging risks, in 2021 the emerging risks for AWC are:

Risk Culture

AWC recognizes that risk culture is a critical component of overall risk management. Therefore, AWC has focused on promoting a risk management culture throughout the organization.

Customer Relationship Management

Customers are key stakeholders to AWC. Customer relationship management is one of the most material topics because it directly impacts the economic dimension, affecting its sustainability. The customers’ needs keep changing while the company has to maintain the quality and safety of the products and services. Relationship management is not just about the company’s business growth, but it is also an important opportunity for the company to serve its customers better. Therefore, AWC strives to achieve high customer satisfaction in all business units by delivering high-quality services and products.

AWC has implemented Customer Relationship Management Programs with the customers, including tenants, which defined policy, objectives and procedures for developing long-term relationship with them. Additionally, AWC has develop marketing strategy and programs, in order to expand our customer base. Such programs include;

  • AWC Connext Application
  • AWC Infinite Lifestyle
  • Smart Building
  • Cross-promotions with various industries

AWC Connext Application

AWC is incorporating technology into its CRM to facilitate a better user experience.

AWC Infinite Lifestyle

Creating a universal experience by providing access to facilities at affiliated hotels under AWC across the country. This lifestyle service allows members to immerse themselves in the AWC experience from anywhere.

Smart Building

Incorporating innovation to deliver seamless access and experiences to customers.

Cross-promotions with various industries

This includes banking, medical and aviation industries. Expanding its business to cover more markets to ensures it thrives in these uncertain times.

Customer Satisfaction Survey

In order to gain deep understanding of customer needs, improve service quality, and developed long-term relationship, AWC conducted customer satisfaction survey on annual basis. The survey uses questionnaires that evaluate key issues which linked to corporate strategy, such as market focus, products/service provided, knowledge management, and business performance.

Customer Satisfaction 2021 Target
Year 2018 2019 2020 2021
Customer satisfaction result (%) 69.66 69.94 73.52 74.35 71.22
*Remarks: Customer satisfaction results were calculated based on the results from hospitality business units excluding Melia Koh Samui.

The trend of customer satisfaction score has been increasing over the years, indicating that AWC maintains positive relationship with our customers.

Supply Chain Management

AWC realizes an important of sustainable supply chain management. By having a solid and sustainable supply chain management, AWC will be able to operate businesses seamlessly, mitigate risk effectively, and fulfill the needs of our diverse customers. All these will enhance AWC’s competitive advantage over our competitors.

To be prepared for emerging challenges, AWC has developed AWC’s Supplier Code of Conduct and disseminate to all suppliers. It is mandatory to all suppliers to sign and return the acknowledgment form to AWC’s personal. For supplier who fails to comply to this fundamental requirement, AWC will not allow such supplier to conduct business with AWC. Topics covered in the AWC’s Supplier Code of Conduct are Corporate governance and business ethics, Labor practices and human rights, Occupational health and safety, and Environmental management. In addition to the Supplier Code of Conduct, AWC has develop Vendor Selection Policy, and Green Procurement Policy to emphasize our intention to create the solid and sustainable supply chain management.

Supply Chain Management Strategy

To ensure that our supply chain management are supporting business strategy and business growth direction, AWC has established five Supply Chain Management Strategies to promote AWC’s strength and upheld suppliers’ ESG standards, these strategies included:

  1. Strengthening Suppliers
  2. Process Enhancement
  3. Collaboration for Sustainable Growth
  4. Creating Sustainable Value
  5. Integrated Risk Management
Key ESG Objective Description of ESG Objective Link to SCM Strategy
Safety Standard Enhancement Occupational Health and Safety is part of supplier evaluation and new vendor evaluation form. The evaluation form would require a supplier/vendor to comply with laws both in safety and environment. Moreover, if the vendor/suppliers acquire the ISO certification, AWC would provide a higher evaluation score to such vendors. The failure to comply law and regulations or any incident related to OHS would result in 2 evaluation point deducted each time
  1. Strengthening Partners
  2. Creating Sustainable Value
  3. Integrated Risk Management
Effective Fraud Prevention Fraud prevention is one of the factors that AWC values and has always been emphasizing. It has been repeatedly mentioned in the Codes of Conduct and Supplier Code of Conduct. In order to prevent fraud from occurring throughout the supply chain, AWC has increased control and checkpoint throughout AWC and suppliers’ business operations.
  1. Strengthening Suppliers
  2. Process Enhancement
  3. Collaboration for Sustainable Growth

To ensure that our strategies are being executed accordingly, AWC has set the KPIs to measure the success for strategies implementation

  • 100% of critical tier 1 suppliers signed the acknowledgement and strictly operate business accordingly by 2021
  • 100% of critical tier 1 suppliers have mitigation plans and resolved risks within 12 months
  • 100% of critical tier 1 suppliers strictly comply with safety and environmental-related laws

Supplier Categorization

Absolute Number of Supplier
Tier 1 suppliers 2652
Critical tier 1 suppliers 82
Critical non-tier 1 suppliers 82

Classification of Suppliers

For AWC, critical supplier refers to manufacturers; goods, materials and services providers; and goods, materials and services distributors who has significant impact on AWC’s competitive advantage, market success, and business operation. Definition of critical suppliers is

  • Suppliers which AWC has high volume purchase.
  • Suppliers that manufacture, provide, and distribution goods, materials, and services that are critical to the business operation.
  • Suppliers that manufacture, provide, and distribution goods, materials, and services that cannot be substitutable.
  • Suppliers that are commissioned to manufacture product labelled house brand or private brand.

In addition to definition of critical suppliers, AWC also defined high ESG risk supplier as manufacturers; goods, materials and services providers; and goods, materials and services distributors, in which their operations are likely to have or cause negative ESG impacts to AWC. Negative ESG impacts can included non-compliance or breach to applicable laws, rules, and regulation, Supplier Code of Conduct, human rights standards, labor rights standards, occupational health and safety practice, environmental responsibility, and etc.

Supply Chain Management Result 2021

Spend Analysis Unit 2021
Total supply chain spend value Million THB 2,493.95

ESG initiatives with Suppliers

Bangkok Marriott Marquis Queen’s Park and The Athenee Hotel, a Luxury Collection Hotel, Bangkok work closely with local farmers to source organic ingredients for their restaurants.

Information and Data Security

With technology advancement and data privacy that has been pushed into the forefront of international legal disputes, it has caused a significant regulatory change. Organizations had to improve their customer and employee data management, which unavoidably highlights information security issues. While Thailand’s regulatory framework is catching up to its international peers, AWC considers data privacy protection as one of its priorities. Understanding its role in data protection for clients, business partners, and employees, AWC determines to take this duty seriously.

Besides, to continuously develop our information management system, AWC established Information Technology Sub-Committee to oversee information and data security strategy, performance, and provide relevant suggestion. This Information Technology Sub-Committee comprises of directors and executives who have relevant responsibilities and experiences in information and data security. The chairman of the Information Technology Steering Committee is Chief Corporate Officer (CCO), whose has extensive background in information and data security and to be responsible for overseeing information and data security within the company. The CCO reports directly to the Risk Management Committee who supervise and support successful implementation of information technology.

IT Steering Committee

Security Awareness

In order to create awareness regarding cybersecurity among AWC’s executives, and employees, AWC established Privacy Policy.

AWC complies with the Personal Data Protection Act 2019 and Cyber Security Act 2019, and other related legislation such as General Data Protection Regulation 2016 by adhering to lawful data collection, recording, and using it only for the relevant purpose. The policy is made internally available to all employees as well as contractors who have permission to access AWC’s information and data. The main objectives of the policy are to describe roles and responsibilities of relevant personals, manage internal information properties, control, and maintain information and data security for both internal and external storage, provide guidance for business continuity plan, and provide guidance for employees to follow.

Information and Data Security Incident Response Plan

AWC developed Information and Data Security Incident Response Plan to systematically manage issues related to information and data security. This incident response plan is designed to be applicable for AWC and external party (contractor) that responsible for storing AWC’s information and data.
AWC Data Leak Prevention system is developed to minimize the risk of data breaches while improving the IT infrastructure efficiency. With strict ethical data usage practice, AWC builds a culture of responsible data use to enhance IT infrastructure efficiency. The company raises awareness about data protection, communicates the emerging IT news via newsletter, and conducts an internal inspection.

AWC assures our stakeholders that we are well prepared for any potential information technology related crises that may occurs.

IT and Cyber Security Performance

2018 2019 2020 2021 Target 2021
Information security breaches or other cybersecurity incidents 0 0 0 0 0
Customers and employees affected by company’s data breach 0 0 0 0 0
Complains on customer data privacy from outside parties 0 0 0 0 0
Complains on customer data privacy from regulatory bodies 0 0 0 0 0

Our Approach to Tax

AWC believes in creating long term value to the whole system and being good corporate citizen. We manage tax affairs consistent with our vision, mission, and core values.

Responsible Tax Compliance

We aim to pay an appropriate amount of tax according to where value is created within the normal course of commercial activity. Any transfer pricing is calculated using the “arm’s length principle”. We also commit not to transfer value created to low tax jurisdiction and not to use tax structures without commercial substance.

We strive to be good force to enhance strong value chain towards sustainability, building a better future together.

Reasonable Tax Planning

AWC does have a responsibility to our shareholders, employees, and business partners to ensure that we do not incur unnecessary or unintended tax liabilities which would damage our business.

This means that we will engage in reasonable tax planning to ensure we are not taxed multiple times on the same profits or transactions, and that we do not fall into any unintended tax traps exposing ourselves to taxes higher than those intended by legislation.
We would also take advantage of tax incentives or exemptions that are provided for in a jurisdiction’s legislation, where we are able to do so. We will not engage transactions which can represent any form of financial crime, tax evasion, or facilitation of tax evasion. In addition, we will not transfer value created to low tax jurisdictions, use secrecy jurisdictions or tax havens for tax avoidance, or use tax structures without commercial substance.

Appropriate Transfer Pricing Practice

We aim to pay an appropriate amount of tax according to where value is created within the normal course of commercial activity. Any transfer pricing is calculated using the “arm’s length principle”.

We strive to be good force to enhance strong value chain towards sustainability, building a better future together.

Organization Contributions

Name of Trade Associations 2018 2019 2020 2021
Thai Hotel Association 3,745 - - 30,500
Thai Chamber of Commerce 8,000 - - 9,630
Thailand Incentive and Convention Association 12,840 27,730 - -
British Chamber of Commerce 2,140 22,470 22,470 22,470
The American Chamber of Commerce - 26,750 34,240 34,240
Australian-Thai Chamber of Commerce - 19,260 19,260 -
Thailand Hotel Standard Foundation Total - - 14,980 -
Austcham Thailand - - - 19,371
European Association for Business and Commerce - - - 32,100
Korean-Thai Chamber of Commerce - - - 10,700
Italian Chamber of Commerce - - - 17,762
Total 26,725 98,210 90,950 154,303

AWC did not make any contributions to and spending for political campaigns, political organizations, lobbyists or lobbying organizations, and other tax-exempt groups, in accordance with Anti-Corruption Policy.


Major issues or topics that AWC supported in 2021 were as follows:

Issue or Topic Corporate Position Description of Position/ Engagement Total Spend in 2021
Support business and trade to promote Thailand’s economic advancement Support AWC is a proactive member to various chamber of commerce including British Chamber of Commerce, American Chamber of Commerce and Australian –Thai Chamber of Commerce. The purpose and values of these chamber of commerce are to advocate for pro-business policies that help businesses prosper, development of relations between nations and ultimately, contribute to the growth of Thailand’s economy. 123,803 Baht
Promote accommodation standards for tourism, hotels and resorts in Thailand Support AWC participates and provides contributions to Thailand Hotel Association, which plays a unique role in the promotion and development of Thailand’s tourism industry. The association aims to raise the standard of the overall hotel business with a consistent and dependable standardized star rating system of one to five throughout the country. At AWC, affiliated hotels are aimed to achieve five-star rating as they continuously provide the best service quality to customers, enhance resource efficiency, as well as promote marketing/sales of the hotel to be able to compete with fairness and in accordance with market conditions as well as customer demand. 30,500 Baht


The top three trade associations that AWC contributed in 2021 were as follows:

Name Type of Organization Description of Trade Association Total Amount Paid in 2021
The American Chamber of Commerce Trade Association The American Chamber of Commerce in Thailand (AMCHAM) is an independent, non-partisan, non-profit and leading international business association in Thailand. AMCHAM maintains collaborative relationships with the U.S Embassy Bangkok and affiliated associations. Its primary objectives are to create positive impacts to Thailand’s economic development. As a member, AWC has gained business benefits through its capacity building, advocacy and networking events. 34,240 Baht
European Association for Business and Commerce Trade Association European Association for Business and Commerce is a trade association with an objective to be the unified voice of the European business community in Thailand. It is also advocate member interests, to support European business in Thailand and to promote Thailand as an attractive partner for European foreign investment and trade. 32,100 Baht
Thai Hotel Association Trade Association Thai Hotel Association is established to promote unity and mutual support in matters related to the hotel industry and its members, Promote tourism in Thailand by requesting cooperation from government tourism organizations and tourism organizations in other countries, and Promote knowledge and coordination among members, regardless of politics. 30,500 Baht