FGV Annual Report 2015

139 WHO WE ARE & WHAT WE DO OUR STRATEGIC INTENT & PERFORMANCE HOWWE ARE GOVERNED CREATING SUSTAINABLE VALUE OUR NUMBERS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING ADDRESSING OUR RISKS & OPPORTUNITIES Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Mitigating Our Risks Top Risks Context Mitigation Volatile FOREX movement may result in losses or loss of opportunity gain Changes in exchange rate between USD and Ringgit Malaysia could have adverse effect on FGV results of operations and financial condition. A substantial portion of our revenues from CPO trading, sugar exports and raw materials are denominated in USD. The company applies a strict hedging policy to reduce any exchange rate exposure through specific hedging activities. Controls and monitoring oversight has also been strengthened to ensure risks on FOREX transactions are constantly mitigated. Risks related to meeting global sustainability standards and certifications FGV is committed to achieving compliance to RSPO Guidelines, labour laws and other quality standards to achieve excellence in quality management of our businesses. Compliance to these standards will ensure wider market reach with the current demand for sustainable palm oil. However, challenges to keep up with certification requirements for a wide range of businesses and increased allegations on non-conformity may lead to reputational issues that need to be managed. A new Sustainability Division is being set up to ensure corporate, environmental and other sustainability requirements are consistently monitored and managed.