FGV Annual Integrated Report 2019

106 FGV HOLDINGS BERHAD BOARD GOVERNANCE & RISK MANAGEMENT COMMITTEE REPORT KEY MATTERS REPORTED TO THE BOARD The Chairman of the Board Governance & Risk Management Committee updated the Board on matters deemed to be of major importance deliberated at the Board Governance & Risk Management Committee meetings and its recommendations. The copies of confirmed minutes of each of the Board Governance & Risk Management Committee meeting were also circulated to the Board for noting at the next practicable Board meeting. Among the significant matters considered by the Board Governance & Risk Management Committee during the year 2019 were the following: AREA OF FOCUS MATTERS CONSIDERED Risk Management a. Assessed and deliberated on the Group’s risk status through the FGV Group Quarterly Risk Report covering the Group’s top 10 risks, Risk Appetite Statement, key risks beyond the risk register, project, emerging and reputational risks. This ensures the Board is always informed of the Group’s risks that require closer attention and of the prevailing risk profile and outlook. b. Recommended the enhanced mechanism of the Project Risk Assessment template to facilitate risk assessment on investment proposals which embeds appropriate risk management processes as part of decision making for major projects, investments and mergers and acquisitions. c. Recommended the proposed expansion of FGV Group’s Risk Appetite Statement. d. Received updates on the outcome of the Risk Scenario Analysis. e. Received reports on the planned risk management activities for the year and completed initiatives. Sustainability a. Received updates on sustainability matters. b. Recommended the proposed revision of the Group Sustainability Policy. c. Considered the proposed Group Sustainability Framework 2020–2022. d. Received reports on the traceability of source of fresh fruit bunches. Reviewed Statements included in FGV’s Annual Integrated Report 2018 a. Reviewed the Report on the Board Governance & Risk Management Committee, the Statement on Risk Management and Internal Control, CGOS and Sustainability Statement to be included in FGV’s Annual Integrated Report 2018 and recommended the same to the Board for approval. The Statement on Risk Management and Internal Control was reviewed reflecting on the reports of the external and internal auditors on the risks and control environment of the Group and related matters that had been brought to the Board Governance & Risk Management Committee and the Board during the financial year. Significant matters How these matters were addressed by the Board Governance & Risk Management Committee Outcome of the process undertaken FGV Group Quarterly Risk Report • Deliberated on the key risks reported in the FGV Group Quarterly Risk Report • The risk scenario of FGV Group was summarised as: a. Risk Appetite Statement b. Risk Register – FGV Group Top 10 Risks and Mitigation c. Key Risks Beyond the Risk Register d. Key Incidents Reported and BCM Updates • The feedback was regularly shared with Management via Divisional Risk Reporting Committee Meetings held at least twice every quarter to assist the businesses in mitigating their risks. • It was concluded that for 2019, the Risk Profile for FGV Group is moderate. HOW WE ARE GOVERNED GOVERNANCE AT FGV: ACCOUNTABILITY