FGV Annual Integrated Report 2019

119 ANNUAL INTEGRATED REPORT 2019 04 S E C T I O N STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL OUR RISK MANAGEMENT FRAMEWORK The framework seeks to minimise risk incidents and maximise business outcomes by allowing us to: • Understand the risk environment and assess the specific risks and potential exposure. • Determine how best to deal with these risks to manage overall potential exposure. • Manage the identified risks in appropriate ways. • Monitor and seek assurance on the effectiveness of the management of these risks and intervene for improvement where necessary. • Escalate to the Management and Board on a periodic basis how significant risks are being managed, monitored, assured and mitigated. An overview of Risk Reporting Architecture is depicted below: Board of Directors Board Governance & Risk Management Committee Group Management Committee Group Governance & Risk Management Division Risk Owners Board Ensures that there are systems in place that effectively monitor and manage these risks Board Governance & Risk Management Committee is tasked with directing and overseeing the formulation of a structured mechanism in the Group to inculcate a strong governance, ethical, integrity and risk management culture within the Group. Audit Committee is tasked with assessing the effectiveness of the system of internal control vis-à-vis the risks, control environment and compliance requirements of the Group. Investment Committee is tasked with ensuring investments undertaken are aligned to the Group’s objectives, vision and overall risk appetite. Nomination and Remuneration Committee is tasked with ensuring that the Group’s remuneration framework attracts and retains the right talent with appropriate competencies to ensure organisation capability and human resources. Board Tender Committee is tasked with reviewing, monitoring and recommending to the Board significant matters related to procurements of the Group in line with FGV’s prevailing Discretionary Authority Limit and Group Procurement Policies and Procedures. Further details of the Board Committees’ Terms of Reference are published on our website www.fgvholdings.com HOW WE ARE GOVERNED