Lopez Holdings



The executive officers and staff members of Lopez Holdings Corporation have been implementing a corporate risk management program since 2002, in line with an enterprise-wide risk management system.

Risks that may hinder the achievement of corporate goals and objectives are identified and reviewed regularly to ensure that mitigation measures are in place to adequately respond to and manage such risks.

The FPH chief risk officer on August 25, 2020 presented the top risks of the FPH Group to the Board Risk Oversight Committee of the Lopez Holdings board, in particular what the group was doing in response to the threats posed by the pandemic. The presentation included action plans to address the such threats, each company’s risk framework, controls, prioritization and alternative mitigation plans. The top risks of investees serve as vital inputs to the regular risk management process of Lopez Holdings.

Its risk impact assessment process was reviewed by external parties when it underwent a surveillance audit in September 2020, under ISO 9001:2015. The current version (2015) of ISO 9001 emphasizes risk-based thinking to enhance the application of the process approach.

The company complies with the Data Privacy Act, and follows Occupational Safety and Health (OSH) standards.


Through continuous monitoring and management, appropriate mitigation strategies were prepared and/or implemented to address the top risks evaluated by the company to be the most significant and/or most likely, as follows:

Customer (Stakeholder) wants/satisfaction risk

Requirements of Lopez Holdings stakeholders vary and the company may be unable to meet all requirements in a timely manner. Regulators require compliance with rules and regulations; creditors require the settlement of all obligations; shareholders require a fair return on their investment; associated companies require financial and other forms of support; senior management requires current and accurate information on group-wide operations; employees require compensation and benefits.

Except for the delayed submission of the 2019 annual report and the quarterly reports for the first and second quarters of 2020, Lopez Holdings satisfactorily served the needs of shareholders, employees, associated companies, regulators and senior management in 2020. Its annual stockholders’ meeting was held virtually to ensure the safety of shareholders and employees. It has no direct obligations, and therefore, no creditors outside of suppliers of goods and services awaiting payment in the normal course of business.

Business interruption risk

Prolonged interruption in operations may stem from disasters such as earthquake or fire that may damage office premises, or should employees fall sick due to general risks to public health.

As part of safety measures and compliant with OSH standards, employees regularly train in disaster risk reduction and emergency response (see section on Employee Wellness and Safety). Employees also receive regular bulletins on public health risks, advising them how to protect themselves and their families. Off-site information systems are in place to ensure continuous operations from remote or mobile locations, should the situation require. All employees participated in the Telecommuting Work Arrangement (TWA) beginning March 13, 2020, or even before the declaration of a nationwide quarantine.

Nonetheless, the company was able to meet all regulatory requirements. The delay in the submission of the 2019 annual report and quarterly reports for the first and second quarters of 2020 were not due to the TWA status but solely because of the delay in the completion of ABS-CBN Corporation’s audited financial statements for 2019, which subsequently affected the finalization of the financial statements of Lopez Holdings Corporation.


In 2020, the following risks were deemed to be less significant and/or less likely:

Capital availability or cash flow (liquidity) risk

This refers to the company’s exposure to the risk of lower returns on its investments or the necessity to borrow due to shortfalls in cash or expected cash flows, or variances in their timing. There is risk that cash flows from dividends and asset sales may not come in as expected. Lopez Holdings has no direct debt to service.

Foreign currency exchange risk and foreign currency revaluation risk

Volatility in foreign currency exchange rates may expose Lopez Holdings to economic and accounting losses related to direct and indirect obligations. Extraordinary fluctuations in foreign currency exchange rates may affect reported operational profits and deficit, potentially reducing the ability of associated companies to declare dividends. The company does not have any direct obligations. It is monitoring the mitigation plans of associated companies in relation to foreign currency exchange and foreign currency revaluation risk.

Interest rate risk

Fluctuations in interest rates may affect the company’s capital availability or cash flow risk as they expose the company to variable cash requirements in relation to debt with floating interest rates. This risk was considered less significant in 2019 given that the company was debt-free.

Credit risk

Lopez Holdings has advances in associated companies but these comprise less than 5% of assets. Trade and other receivables refer to accounts under the FPH Group, which are managed at the FPH level. Lopez Holdings does not offer credit terms for the provision of services as a holding company.

Capital management risk

The company has no material commitments for capital expenditures and has not made any major investments since 2013.


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Lopez Holdings Corporation 
16/F North Tower, Rockwell Business Center Sheridan, Sheridan St. corner United St., 1550 Bgy. Highway Hills, Mandaluyong City, Philippines

  • Trunkline: (632) 8878 0000
  • Fax: (632) 8878 0000 ext 2009