FGV Annual Integrated Report 2019

107 ANNUAL INTEGRATED REPORT 2019 04 S E C T I O N BOARD GOVERNANCE & RISK MANAGEMENT COMMITTEE REPORT Significant matters How these matters were addressed by the Board Governance & Risk Management Committee Outcome of the process undertaken Risk Scenario Analysis • Deliberated on the proposed mitigation plans on previously deliberated and acknowledged scenarios: a. Scenario 1 – Prolonged CPO Price Decline b. Scenario 2 – Adverse Weather (El Nino) c. Scenario 3 – Economic Crisis • Acknowledged extent of potential risk exposures to the Group arising from the exercise. • Recommended engagement with affected business sectors on mitigation actions to address the risks associated with the scenarios. • Several limitations were detected in implementing the study. • A series of internal meetings between Group Risk and the respective business sectors and relevant departments affected by the scenarios were held to discuss mitigation plans aimed at ensuring FGV’s resilience against such scenarios. FGV Group’s Risk Appetite Statement (RAS) • Approved and guided the development of RAS expansion to reflect the actual risk profile of FGV Group. The risk drivers and the associated key risk indicators were proposed to be segmented into financial, operational, weather and market. • Reviewed and guided the development of FGV Risk Profile Monitor that provides a wider scope of risk drivers encompassing fields such as economics, strategic and global issues. • In order to ensure the continued relevance and applicability of RAS to serve as a sound risk profiling tool and reflect the overall risk profile of the Group, Group Governance & Risk Management embarked on this initiative to revamp and improve the existing Group RAS. FGV Risk Profile Monitor is part of the revamp targeted at better reflecting the Group Risk Profile by providing a wider scope of risk drivers encompassing fields such as economics, strategic and global issues. Organisational Anti-Corruption Plan (OACP) • Recommended for further approval from the Board for the development of OACP to replace FGV Corporate Governance & Business Integrity Blueprint. • The review and enhancement of the Blueprint into the OACP will expand the coverage of the action plans by effectively identifying the corruption schemes, using the CRM approach. Anti-Bribery Management Systems (ABMS) Manual • Recommended for further approval from the Board for the ABMS Manual that was developed by taking into consideration the requirements stated in ISO 37001:2016. • The manual is a guide for FGV Group to establish, implement, maintain, review and improve the anti- bribery management system. Group Policies • Made recommendations on the Group’s revised policies on governance, risk and control for the Board’s approval. • Recommended the proposed revision of the Board Charter, Terms of Reference of Board Committees, FGV Board Nomination and Election Policy and Procedures, Board Remunerations Policy, Group Human Capital Policies, Group Information and Communication Technology Policies, Group Sustainability Policy, Group Commodity Trading Policy, Corporate Responsibility Policy, Sponsorship and Donations Policy, Advertising & Promotions Policy, Event Management Policy, Group Internal Audit Charter, Finance Policies and Procedures and Group Procurement Policy. • Recommended the proposed establishment of the Group’s Limit of Authorities, FGV Governance of Policies and Procedures, FGV Corporate Governance and Business Integrity Blueprint, Governance and Integrity Framework, Conflict of Interest Policy, Referral Policy, Management of Classified Document Policy and Independent Advisory Panel Terms of Reference. HOW WE ARE GOVERNED GOVERNANCE AT FGV: ACCOUNTABILITY