FGV Annual Report 2013

The Board is assisted by four (4) committees. The Board Governance & Risk Management Committee (BGRMC) oversees the governance and risk management aspects of the Group. The Audit Committee (AC) oversees the implementation of a system of internal controls and audit. The Investment Committee (IC) assists the Board in ensuring investments undertaken is aligned to the Group’s vision and overall risk appetite. The Nomination & Remuneration Committee (NRC) determines who goes into the board and who goes out from the board based on assessment of board members effectiveness and contribution. Similarly, at the Management level, NRC also determines the senior management member position from Vice President and above that goes into the Management and goes out of the Management. The NRC also determines the quantum of remuneration and benefits entitled to the board members and management members. The Board has an on-going process for identifying, evaluating and managing significant risks faced by the Group. The Board has delegated the responsibility of monitoring the internal control and risk management systems to specific Board Committees. There are two (2) Committees at the Board level that have primary risk management and internal control oversight responsibilities: i. Board Governance & Risk Management Committee, and ii. Audit Committee. The Investment Committee is also tasked to oversee and address the risks arising out of the specific investment decisions in investment projects that FGV undertakes. These Committees empowered by clearly established and approved terms of reference, ensure that appropriate methods and procedures are used to obtain the level of assurance as required by the Board. Management is responsible for implementing the Board’s framework, policies and procedures on risk and internal controls. The Board has received assurance from the Group President/Chief Executive Officer and Group Chief Financial Officer that the Group’s risk management framework and internal control systems of the Group are operating adequately and effectively in all material aspects, throughout the financial year ended 31st December 2013 and up to the date of this statement. BOARD GOVERNANCE & RISK MANAGEMENT COMMITTEE (BGRMC) The BGRMC supports the Board’s oversight function on its statutory and fiduciary responsibilities in relation to governance, ethics and risk management. The BGRMC provides quarterly reports of the matters deliberated to the Board. The scope of BGRMC includes: • Directing, overseeing, formulating, reviewing, monitoring and recommending the Group’s governance framework, blueprints and policies with the view to inculcate an ethical and governance climate consistent with the Board’s risk appetite, guided by the best practices of the Malaysian Code of Corporate Governance 2012. Lembaga Pengarah dibantu oleh empat (4) jawatankuasa. Jawatankuasa Tadbir Urus & Pengurusan Risiko Lembaga (BGRMC) menyelia aspek- aspek tadbir urus dan pengurusan risiko Kumpulan. Jawatankuasa Audit (AC) pula menyelia pelaksanaan sistem kawalan dalaman dan audit, sementara Jawatankuasa Pelaburan (IC) membantu Lembaga Pengarah memastikan pelaburan yang dijalankan diselaraskan dengan visi dan keseluruhan tahap kesanggupan pengambilan risiko Kumpulan. Jawatankuasa Pencalonan & Imbuhan (NRC) pula menentukan inividu yang akan menyertai lembaga dan yang akan keluar daripada lembaga berdasarkan penilaian terhadap keberkesanan dan sumbangan setiap ahli lembaga. Begitu juga di peringkat Pengurusan, di mana NRC turut menentukan jawatan ahli pengurusan kanan daripada jawatan Naib Presiden ke atas yang menyertai Pengurusan dan yang keluar daripada Pengurusan. NRC turut menentukan kelayakan kuantum imbuhan dan manfaat untuk ahli-ahli lembaga dan pihak pengurusan. Lembaga Pengarah mempunyai proses berterusan untuk mengenalpasti, menilaidanmengurusrisikoyangketaradihadapiolehKumpulan.Lembaga Pengarah telahmenyerahkan sistem tanggungjawab pemantauan kawalan dalaman dan pengurusan risiko kepada Jawatankuasa Lembaga Pengarah tertentu. Terdapat dua (2) Jawatankuasa di peringkat Lembaga Pengarah yang menggalas tanggungjawab utama dalam pengurusan risiko dan pengawasan kawalan dalaman: i. Jawatankuasa Tadbir Urus & Pengurusan Risiko Lembaga; dan ii. Jawatankuasa Audit. Jawatankuasa Pelaburan juga ditugaskan untuk menyelia dan menangani risiko-risiko yang timbul daripada keputusan pelaburan tertentu dalam projek-projek pelaburan yang dijalankan oleh FGV. Jawatankuasa-jawatankuasa tersebut diberi kuasa menyediakan dan meluluskan terma rujukan yang jelas, memastikan kaedah dan prosedur yang digunakan bersesuaian bagi mendapatkan tahap jaminan yang diperlukan oleh Lembaga Pengarah. Pengurusan bertanggungjawab melaksanakan rangka kerja, dasar dan prosedur Lembaga Pengarah berhubung risiko dan kawalan dalaman. Lembaga telah menerima jaminan daripada Presiden/Ketua Pegawai Eksekutif Kumpulan dan Ketua Pegawai Kewangan Kumpulan bahawa rangka kerja sistem pengurusan risiko dan kawalan dalaman Kumpulan sedang beroperasi dengan mencukupi dan berkesan dalam semua aspek penting sepanjang tahun kewangan berakhir 31 Disember 2013 dan sehingga ke tarikh penyata ini. JAWATANKUASA TADBIR URUS & PENGURUSAN RISIKO LEMBAGA PENGARAH (BGRMC) BGRMC menyokong fungsi pengawasan Lembaga Pengarah berhubung tanggungjawab berkanun dan fidusiarinya berkaitan tadbir urus, etika dan pengurusan risiko. BGRMC menyediakan laporan suku tahunan mengenai perkara-perkara yang dibincangkan oleh Lembaga. Skop BGRMC termasuk: • Mengarah, menyelia, merangka, mengkaji, memantau dan mencadangkan rangka kerja tadbir urus, pelan induk dan dasar- dasar Kumpulan dengan tujuan untuk menerapkan persekitaran beretika dan tadbir urus, sejajar dengan tahap kesanggupan mengambil risiko Lembaga, berpandukan amalan terbaik Kod Tadbir Urus Korporat 2012. Statement On RISKMANAGEMENT AND INTERNAL CONTROL Penyata Pengurusan Risiko dan Kawalan DalamAN Felda Global Ventures Holdings Berhad 148