FGV Annual Integrated Report 2019

126 FGV HOLDINGS BERHAD REVIEW OF RISK MANAGEMENT AND INTERNAL CONTROL In ensuring continuous improvement of the risk management and internal control system, FGV conducted the following review processes during the financial year: Business units, in collaboration with GGRM, conducted assessments on the effectiveness of controls over key risk areas surrounding their operations and other initiatives. The exercise was meant to ascertain whether the emplaced controls were adequate and operating as intended or required improvement in order to fully address the identified gaps. Assessment of Controls GGRM coordinated the quarterly review of risk registers with the business units to ensure changes in the risk profiles were captured in the ERMS, assessed and evaluated and that appropriate mitigation measures were being formulated. Review of Risk Register Group Internal Audit conducted regular and systematic reviews to provide independent and objective assurance to the Audit Committee and Management, focusing on the adequacy and effectiveness of control over governance, risk management and processes. Independent Group Internal Audit Review RISK MANAGEMENT APPROACH FOR FGV’S LISTED SUBSIDIARY MSM Malaysia Holdings Berhad (MSM), as a listed subsidiary of FGV, undertakes its risk management and internal control responsibilities through its Audit Committee, Investment Committee and Board Governance & Risk Management Committee for subsequent deliberation by MSM’s Board. Any risks identified as having significant impact on FGV Group are reported to FGV Board’s Governance & Risk Management Committee and where they have a direct impact on the financial performance of the Group, are reported directly to the FGV Audit Committee, and subsequently to FGV’s Board. REVIEW OF STATEMENT BY EXTERNAL AUDITORS As required by Paragraph 15.23 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the external auditors have reviewed this Statement on Risk Management and Internal Control. Their limited assurance review was performed in accordance with Audit and Assurance Practice Guide (AAPG) 3 issued by the Malaysian Institute of Accountants. AAPG 3 does not require the external auditors to form an opinion on the adequacy and effectiveness of the risk management and internal control systems of the Group. STATEMENT BY THE BOARD Based on the processes and measures undertaken by the Board and its Committees during the financial year and reasonable assurance provided by the GCEO and the GCFO, the Board is of the view that the Risk Management Framework and internal control system as described in this Statement have been operating adequately and effectively in all material aspects to safeguard the interests of our stakeholders. This Statement was made in accordance with a resolution of the Board of Directors approved on 17 April 2020. HOW WE ARE GOVERNED STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL