Shaped By High Standards Of Governance ANNUAL INTEGRATED REPORT 2022 165 Adequate Procedures Adequacy Assessment 2022 FGV strengthens its commitment by implementing internal control systems of integrity management and corruption prevention via the Anti-Bribery Management System (ABMS), whistleblowing mechanisms and continuous awareness programmes. The Group also voluntarily submitted its efforts in upholding integrity to the Integrity, Governance and Anti-Corruption Awards 2022 (AIGA 2022), organised by the Institut Integriti Malaysia (IIM), for evaluation. Outcome: These initiatives have benefited us in many ways, especially in building a stronger governance foundation. As a result of the assessment carried out by the IIM, FGV has been conferred a bronze award at AIGA 2022 for demonstrating a commitment to cultivate and practise integrity, best governance and anti-corruption initiatives. Statement on Risk Management and Internal Control As a diverse organisation, FGV is subject to a range of risks, such as macroeconomic and industry-specific risks, that are outside of its control. To address these risks, the Group has provided a comprehensive overview of its key risks, including their respective Key Risk Indicators, and considered the potential risks and opportunities. FGV acknowledges that there may be unknown or currently immaterial risks that could become material in the future and affect the organisation’s performance, assets, liquidity, capital resources and reputation. To ensure that the Company is equipped to tackle business challenges and align with its strategic priorities, FGV regularly reviews its key risks. The BGRMC deliberates on reported key risks, together with corresponding mitigations, while the GGRM facilitates the risk management process. The potential impact of these risks, either individually or in combination, could have a significant adverse effect on the organisation’s business. To stay ahead of a rapidly changing and increasingly complex risk landscape, FGV adopts a forward-looking approach to identify emerging risks that are not yet entirely understood and managed. The Group analyses how risks are evolving and related to each other to assess their potential impact on FGV, reduce uncertainty, prevent unforeseen losses and raise awareness within the Group and across the industry. As part of the risk assessment process, emerging risks are identified through horizon scanning, internal risk surveys with key business units, analyses of various reports, and keeping up with market and industry changes. The RMC, BGRMC, and Board assess the summary of emerging risks identified through this process, which are continued to be monitored as part of the Group’s risk management processes. Emerging risks that FGV is monitoring include, among others, economic downturns, China’s slowdown, the weakening of Ringgit Malaysia, falling commodity prices, inflationary pressures, the Russia-Ukraine conflict and the potential recurrence of militant threats. KEY RISKS AND UNCERTAINTIES Organisational Resiliency During the COVID-19 Pandemic FGV took a comprehensive approach to manage the challenges posed by the COVID-19 pandemic. This approach included updating the Group’s COVID-19 Standard Operating Procedures (SOPs), ensuring compliance with the government’s and authorities’ directives, overseeing pandemic management, diligently monitoring employee health status, worksite shutdowns and implementing work-from-home arrangements where necessary and assessing and monitoring risks related to the pandemic, as well as strengthening structured and effective communications throughout the Group. Outcome: FGV has developed organisational resiliency in curbing the further spread of COVID-19, establishing well-organised responses to reported positive cases, safeguarding employees’ productivity and delivery of commitments to business partners and ensuring the stability of relationships with relevant government agencies. The Group’s efforts were recognised when FGV was named a winner of MARIM’s 2022 Risk Management Award for Excellence in Resilience during the COVID-19 pandemic. Renewed Online Integrity Pledge Taking and renewing the integrity pledge annually is a requirement for all FGV employees. In 2022, this requirement was expanded to the Board of Directors. Outcome: Besides enhancing the Company’s credibility and image, the online integrity pledge makes clear to all employees the Company’s zero-tolerance stance against corruption, which increases corruption risk awareness and mitigation. 100% of the 16,812 employees signed the pledge.
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