JOINT MEMORANDUM ORDER NO.

____
SERIES OF 2023

TO: ALL CONCERNED OFFICIALS AND PERSONNEL

OF THE SECURITY, SAFETY, LEGAL, MARKETING,
LOGISITICS, HR, AND IT DEPARTMENT

SUBJECT: CREATION OF AN “INTEGRATED SECURITY TASK

FORCE”

1. BACKGROUND

The Security Department of SAN MIGUEL BREWERY CORP. is the primary

office responsible for the protection and preservation of Company assets (employee,
properties, and interests) from loss and damage. It is beyond dispute, that security is an
inherent aspects of every establishments operation and sustainability. Thus, the Security
Dept. is always committed to take the lead in the formulation and enforcement of
policies, plans and programs towards sustainable and continuous protection and welfare
of its people, assets and business interests.
To help fulfill this mission, the Security Dept. of SMB proposed for the creation of
a unified Security Task Force structure and staff complement. This Task Force involves
the collaboration, cooperation and shared responsibility between different Offices and
stakeholders to take concrete steps and solutions to effectively curtail and respond to
different kind of incidents involving the company’s assets.

2. PURPOSE OF THE SECURITY TASK FORCE

While it is the direct responsibility of the Security Dept. to ensure the safety and
security of the Company’s assets it is not prohibited to implement programs and policies
which call the attention and assistance of different stakeholders. Security to be effective
must have the synergy and balanced application of different available manpower
resource and stakeholders.
It shall, among others, review and appraise systems and programs, asset
management, policies, records, reports, trainings, and performance standards of
concerned offices, whenever necessary.
The Task Force aims to contribute to the Corporations mission and vision by
providing effective mechanisms through an inter-collaboration by different offices in
achieving an independent assessment on governance, risk/threat management and
control processes for the company. It may include internal security engagements on the
Company’s security systems, legal and regulatory compliance, performance and due
diligence engagements.
To further enhance the Company’s protection and improve its security policies and
procedures, the Task Force may undertake advisory services. These advisory services
comprise insights on related threat and risk activities, possible disasters, societal unrest,
and other incidents which may leave some businesses floundering. This services will
make the company prepared for almost any eventuality.

3. AUTHORITY
As the Head of SMB, the President grants full and unrestricted authority to the
Task Force to access all functions, premises, assets, personnel, records and other
documents and information necessary in undertaking internal security activities. The
Task Force shall maintain strict accountability for the confidentiality and safeguarding of
records and information obtained in the course of performing the security activities.
All SMB officials and employees, including its attached or subcontracted units,
are enjoined to fully cooperate during security engagement.

4. ORGANIZATION

An “Integrated Security and Safety Task Force” (hereinafter referred to as

the “Task Force” for brevity) which shall be organized at the national, regional and
local levels by the San Miguel Brewery Corp., in collaboration with the PNP, NBI,
Intellectual Property Commission and other law enforcement authorities is hereby
created upon the effectivity of this Memorandum/Order.

The Task Force as an integral part of the Corporation shall report and
coordinate with the National Security Manager.

5. INDEPENDENCE AND OBJECTIVITY

The Task Force, in the performance of its functions and duties, shall primarily and
strictly observe the Company Policy, Rules and Regulation, Code of Conduct and
Ethical Standards for its Officials and Employees.
It shall be independent, integrated and its members shall be objective in the
performance of their assigned duties and functions.
Moreover, the Task Force shall remain free from interference, influence and conditions
of other offices in order to carry out its responsibilities.
It must maintain an unbiased and impartial mindset and judgement regarding all its
engagements. Consequently, Task Force members and concerned personnel must have
no direct or indirect interest nor personal involvement, and/or allegiance or biases to the
 area or personnel they are investigating. Importantly, the Task Force must exhibit the
highest level of professionalism in conducting its affairs.

6. COMPOSITION

The Integrated Security and Safety Task Force shall be composed of the following:
Chairperson : President or Vice President
Co-Chairperson : National Security Manager
Members : Including but not limited to Legal, Marketing,
Human Resource, Logistics, Information
Technology and Security Dept.

The members of the Task Force shall be heads of the Departments concerned who shall
designate their permanent alternates or authorized representatives.

The Chairperson shall have the operational control and supervision of the Task Force and
the overall responsibility of ensuring that the objectives of this Memorandum are
accomplished.

7. SECRETARIAT
The Task Force shall be assisted by a Secretariat composed of the members of the
Security Department.

8. FUNCTIONS AND RESPONSIBILITIES

Hereunder are the respective responsibilities of the Task Force relative to its
operationalization and function in the Corporation:
8.1 President/Vice-President – As the Executive primarily responsible for the
management, approval and overall strategic direction in the affairs and
operation of the Company, the President or Vice in the performance and
realization of Task Force, is responsible for the following:
a. Ensure that the Task Force fully discharges its function;
b. Review and approve security task force reports, plans and programs;
c. Discuss the security and safety findings and recommendations with other
senior or key officials concerned in the corporation, as necessary;
d. Lead the implementation of the approved security findings and
 recommendations;

e. Instruct senior/key officials concerned in the company to undertake

necessary actions, including the development/refinement of certain policies
and guidelines to avoid occurrence or recurrence of weaknesses and
incidences;

f. Periodically review the performance of the Task Force, as part of

supervision and control.
g. Oversee the overall implementation of this Order/Memo.

8.2 Co-Chairperson – The Head of Security Department (National Security

Manager “NSM”) shall the following responsibilities, among others, to wit:
a. Develop an annual collaborated and integrated security and safety
plan based on the annual reports and risk assessments. The NSM shall
submit to the Chairperson the drafted risk-based task force plan for review
and approval;
b. Implement the Task Force Plan, as approved, including any special
tasks or projects requested by the management. However, he or she shall not
be responsible for or required to participate in procedures which are
essentially part of a regular operating activities or in operations which are
the primary responsibilities of another unit/office in the company;
c. Monitor and report the implementation of the Annual Task Force
Plan to the President;
d. Monitor, evaluate and assess the engagement/security findings and
corrective actions, and periodically report to the President any corrective
actions not effectively implemented;
f. Ensure the Task Force personnel particularly the members of the
Security Department possesses or obtains the knowledge, skills, attitude,
competence and compassion needed to effectively perform their task and
duties and also to meet the requirements of the Task Force Services by
engaging in active trainings;
g. Convene the members of the Task Force regularly and provide them
with necessary secretariat support;
h. Promote successful practices in security auditing;
i. Establish means and ensure adherence to policies and procedures
 designed to guide the Task Force in the conduct of its engagements.
j. Ensure Task Force adherence to Company relevant policies and
procedures consistent with pertinent government laws, rules and
regulations;
k. Be the lead in conducting information and communication activities
and campaigns to increase awareness on different security and safety
concerns;
l. Coordinate with and seek the assistance of concerned government
agencies whenever necessary;
m. Create and secure a database and pertinent records of security
incidents.
j. Formulate and implement a Security Manual.

8.3 Members of the Task Force- The members, which may refer to the different
offices or units including but not limited to Legal, Marketing, Human Resource,
Logistics, IT and Security Dept. plays a cooperative and significant role in the
course of the conduct of the Task Force. In doing so, they are responsible among
others for the following:
a. Understand the Task Force objectives, scope, criteria and
methodology.
b. As authorized by the Chairperson, allow the Task Force/Secretariat
to have full, free and unrestricted access to all functions, premises,
assets, personnel, records, and other documents and information that
the Task Force considers necessary in undertaking security and
safety activities.
c. Provide comments and insights about the security and safety issues
as a way of validating the Task Force Findings;
d. Comply with the approved security and safety findings and
recommendations;
e. Implement preventive and corrective measures to address the security
issues and concerns.
f. Whenever necessary, provide manpower resource, expertise and
services to assist the Security Team in investigation and conduct of
its affairs to provide a speedy and inexpensive disposition of certain
cases.
g. Promote employee awareness on security and safety protocols and
procedures.
 h. Provide feedback and suggestions regarding the performance of the
Task Force in its security and safety engagements.
Internal control is an integral process that is effected by the Company’s management and
personnel and is designed to address risk and to provide reasonable assurance that in the
pursuit of the Company’s mission, the general objectives are being achieved. As such,
internal controls are shared responsibility of everyone and therefore constitute and
implicit and explicit part of everyone’s job description.

9. SECURITY TASK FORCE PLAN

At least annually, the Co-Chair of the Task Force will submit to the President an
Engagement/Task Force Plan for review and approval. The plan will consist of a work
schedule as well as budget and resource requirements for the next calendar year
including the accepted assurance and advisory engagements. The National Security
Manager will communicate the impact of resource allocation and limitations and
significant interim changes to the President.
The Plan will be developed based on a regular security check/audit and
prioritization of risk-based sites, including inputs from the Security Associates in charge
of the area. The National Security Manager will review and adjust the plan, as necessary
in response to changes in the Company’s risk, operations, programs, systems, controls
and available resources. Any significant deviation from the approved plan will be
communicated to the President through periodic reports.

10. REPORTING AND MONITORING

A written report, which includes the security/engagement’s objectives, scope, and
results will be prepared and issued by the Secretariat following the findings and
recommendation of each security engagement and will be distributed as appropriate.
Internal security engagements and results will also be communicated to the members
when approved by the Chairperson.
The internal security and safety reports may include the member’s response and
corrective action taken or to be taken regarding the specific findings and
recommendations. Members response, whether included within the original security
engagement report or not should provide a timeline for anticipated completion of action to
be taken and an explanation for any corrective action that were not been implemented.
The Secretariat will periodically report to the Chairperson on the security
engagements purpose, authority, and responsibility, as well as performance relative to its
plan. Reporting will also include significant risk exposures and control issues, including
fraud risks, administrative issues, and other matters.
11. QUALITY ASSURANCE AND IMPROVEMENT PROGRAM

The Task Force activity and engagements will maintain a Quality Assurance,
Improvement and Confidentiality Program that covers all aspects of the security
engagements and activity.

The program or engagement will include an evaluation of the Task Force activity’s
conformance with the company’s policies and regulations supported with an evaluation
whether the Task Force apply the Code of Ethics and core values of the Company.

The National Security Manager will communicate to the President on the Quality
Assurance and Improvement Program activities, including results of ongoing internal and
external assessments.

12. RESOLUTION CLAUSE

The interpretation of ambiguous provisions of this Order, if there be any, including

those cases not covered herein, shall be referred to the Task Force en consulta for its joint
resolution, providing that nothing in this Order shall be construed as precluding the Task
Force Secretariat from issuing the necessary supplementary guidelines to implement its
provisions.

13. SEPARABILITY

If any provision of this Company Order is declared invalid or void by the joint
resolution of the members or by any competent body, the validity of the remainder of this
Order shall not be affected thereby. To this end, the sections and provisions hereof are
declared to be severable.

14. EFFECTIVITY CLAUSE

This Company Order shall take effect immediately upon publication or dissemination
by the Head Office.
SIGNED AND AGREED UPON by the member-offices this __________________
In Pasig City, Metro Manila.

ROBERTO N. HUANG
President
Chair, Security Task Force

JONATHAN MANANSALA _____________________

Security Manager Head, Legal Department
Co-Chair, Security Task Force Member, Security Task
_______________________ _____________________
Head, Safety Dept. Head, Logistics Dept.
Member, Task Force Member, Task Force

_______________________ _____________________
Head, IT Dept Head, HR Dept.
Member, Task Force Member, Task Force