FGV Annual Report 2014

Risk Approach for FGV Listed Subsidiary MSM, as a listed subsidiary of FGV, reports its risk management activities to MSM’s Audit Committee for subsequent deliberation at MSM Board. Any risks identified as having significant impact on FGV Group is reported to BGRMC and where it has direct impact to the financials of the Group, is reported directly to AC, and subsequently to FGV Board. INTERNAL CONTROL FRAMEWORK FGV Group manages its risks by implementing various internal control mechanisms. The mechanism applies to all subsidiaries within the Group and excludes joint venture companies and associates not managed by FGV. However, the Group ensures that its interests and investments are safeguarded by having Board representation(s) and/or nominated appointee(s) in the respective joint ventures and/or associates. The key elements of the Group’s internal control structure are as follows: Ethics & Integrity Competency Policies & Procedures Internal Control Structure Monitoring – Financial and operational review – Group Internal Audit – Check & Balance (Whistleblowing) – Operational Policies & Procedures – Budgetary Process – Code of Ethics & Conduct For Employees – Integrity Initiatives – Whistleblowing Policy and Procedures – Organisational Structure – DAL – Job Description & Performance Management – Executive Information System (EIS) – Talent Pipeline Programs – External Recruitment – Trainee Programs – On-going Development Programs Authority & Responsibility Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 153