The Securities and Exchange Commission (SEC) has established guidelines and tools for liquidity risk management of mutual funds. There are various and sufficient liquidity management tools to protect the unitholders and reduce risks of the financial system. Fund raising tools are promoted for sustainable enterprises that integrate environmental, social and governance factors. The issuing and offering Bond have set specifying criteria to promote sustainability (sustainability-linked bond) that has an important characteristic is there is an agreement to change the nature of the underlying instrument in relation to the achievement or performance of the issuer’s sustainability indicators and goals, such as Increasing the interest rate that will be paid to the Bond holder (step-up coupon) if the issuer fails to meet the target. or reducing the interest rate (step-down coupon) if the issuer successfully completes the target including the improvement of investor definition which originally considered only from the financial position to increasing consideration of the knowledge of the product’s risk to be invested. To allow investors to have more options to invest in a variety of products. The Office of Insurance Commission (OIC) has set rules for personal data of the insured which insurance companies must have the system or process to manage the acquisition, retention and protection of personal data in accordance with Personal Data Protection Act B.E. 2019. 2.3.3 Shareholder Risk Shareholder risk may arise if the return from investment is not as initially expected. Returns from the investment in shares either in the form of capital gains and/or dividend income, might not materialize. Dividend income are dependent upon the Bank’s profits. Capital gains are determined solely by TTB’s share price, which is influenced by a variety of factors. However, The Bank provides broad guidance on its financial targets in the beginning of each year and shareholder may face the risk that these financial targets might not be met in a particular year, which would affect both dividend and share price. However, the Bank aims to consistently maintain its operating performance and prudent risk management in order to generate sustainable returns for shareholders in the long run. Nevertheless, there are other external factors, which are beyond the Bank’s control, that have the potential to affect the Bank performance and dividend payments e.g. domestic and global economic trends, domestic political stability, capital movements, changes in BOT’s supervision which impact banking system including the unpredictable circumstances in particular we faced with prolonged COVID-19 pandemic. Hence, shareholders must be aware of all risk factors in which out of the Bank’s control and decide on investment to suit their acceptable risk levels. 2.3.4 Emerging Risk Despite having a solid risk management framework, ttb’s forward-looking risk management needs to cover the risk landscape that is constantly evolving due to a combination of internal and external factors. For the continued success of our business, it is important to identify these risk factors earlier on to be able to adapt accordingly. Thus, we need to identify and understand relevant internal and external threats that could undermine our profitability and growth. 112 TMBThanachart Bank Public Company Limited
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