140 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION The Board is pleased to present the Statement on Risk Management and Internal Control, pursuant to Chapter 15, Paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad and Principle B of the Malaysian Code on Corporate Governance 2021, with guidance from the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers. The GMC is supported by the risk management processes administered by the Group Governance and Risk Management Division (GGRM) which is tasked with the proper inculcation of risk management practices and culture within FGV. The GGRM works closely with the business by providing expertise and support on risk management thought process and challenge, and monitoring of the business risks identified. The Group also relies on the work of its Group Internal Audit (GIA) for input on improvements of its risk management processes and identification of internal controls weaknesses related to mitigation of the key risks. Further details on GIA can be found under Corporate Governance Overview Statement on page 103. RISK MANAGEMENT FRAMEWORK FGV’s risk management framework has been established to set clear guidelines in relation to the level of risks acceptable to the Group. The framework which is designed to ensure proper management of risks and related processes are benchmarked against ISO 31000 Risk Management Standards. The Group’s risk management framework involves a continuous process of identification, evaluation and management of risks that would impede the achievement of the Group’s long-term and short-term strategies and objectives. The framework aims at embedding risk awareness in all decision-making and a commitment to managing risk proactively and effectively. The risk management framework provides the Board and its management with tools to anticipate and manage both existing and potential risks, taking into consideration the changing risk profiles as dictated by the changes in business strategies, operations, external environment and regulatory changes. Statement on Risk Management and Internal Controls RESPONSIBILITIES AND ACCOUNTABILITIES BOARD OF DIRECTORS The Board affirms its responsibility and commitment in embedding sound risk management practices and internal controls in the operations of the Group. The Board also ensures that the risk management practices and internal controls are adequate for identifying, evaluating, monitoring and managing the principal risks faced by the Group in its achievement of its strategic objectives. Each year, the Board reviews the effectiveness, adequacy and integrity of these systems. BOARD COMMITTEES The Board is supported by the Board Governance & Risk Management Committee (BGRMC) and Audit Committee (AC) on matters related to risk management and internal controls. One of the key roles of BGRMC is to direct and oversee the formulation of a structured mechanism to inculcate a strong risk management culture within the Group. The BGRMC assists the Board in reviewing the Group’s key business risks, progress of mitigation measures including related internal controls and provide guidance on strategies to mitigate the key business risks. The BGRMC also periodically reviews the risk management processes to ensure that the processes facilitate proper identification and assessment of emerging risks. The Audit Committee undertakes an independent review of the sufficiency and effectiveness of the risk management processes and system of internal controls. GROUP MANAGEMENT COMMITTEE The Group Management Committee (GMC), being a platform that consolidates the views of the Top Management of FGV Holdings Berhad (FGV), plays a key role in the identification and analysis of the key business risks of FGV. The GMC deliberates the status of the mitigation actions and strategies. Moving forward in 2022, FGV will establish a Risk Management Committee to place specific focus on managing the Group’s risks to enable the GMC to focus on business undertaking and performance.
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