FGV Annual Report 2015

143 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 Statement on Risk Management and Internal Control KEY RISK MANAGEMENT ACTIVITIES FOR 2015 Key risk management activities undertaken during the financial year under review are as follows: Review of Risk Management Framework, Policies and Procedures Appreciating the importance of a sound risk management system, FGV appointed external consultants to conduct a comprehensive risk management review to identify and close possible gaps in the current risk management framework including GRMD policies and procedures. The recommendations by the consultant will be reviewed for implementation in 2016. Enhanced Reporting of Key Risks Key enterprise risks were reported every quarter to BGRMC. All Clusters, corporate centres and subsidiaries within the Group update the Risk Registers through the Enterprise Risk Management System and reported to BGRMC through GRMD. Additionally, GRMD has enhanced its risk reporting to include a top-down risk assessment methodology which enhances identification of macro and strategic level risks that may not be detected from reliance only of the bottom-up approach via the risk register. This provides more robust and effective risk management, and supports the Group’s business objectives through both ensuring operational risks are under control as well as managing high level risks of the Company’s strategic initiatives. In all, besides the FGV top risks derived from the ERM Risk Register, principal enterprise and business risks affecting FGV Group on top and beyond risks in the ERM risk register are identified and analysed. Key project related risks as well as overview of new, emerging risk landscapes are also reported to the Board. All the identified risks are linked to the relevant company objectives. Development of Risk Management Culture and Awareness GRMD’s activities are designed to instil the importance of a strong and effective riskmanagement culturewithin the Group. Enterprise RiskManagement and Business Continuity Management awareness and training sessions were conducted for targeted groups. Business Continuity Management (BCM) BCM is prepared to support the Group to respond and recover from significant unexpected events. The BCM documentation including Business Continuity Plans, Business Impact Analyses, and Risk Assessments were reviewed to maintain robust plans to protect the interests of the Stakeholders. Additionally, BCM testing has been conducted at the relevant Corporate Centres and subsidiaries. GRMD Risk Register Review GRMD conducted several Risk Register Reviews of selected Risk Registers. This is an on-going activity to ensure relevant and effective risk reporting by the Clusters, Corporate Centres and subsidiaries of the Group. Enhancement of Enterprise Risk Management System The Enterprise Risk Management System which was rolled out in 2014 continues to be used to update key enterprise risks of the Clusters, Corporate Centres and subsidiaries on a quarterly basis. GRMD conducts administering activities for the system and further enhancements were implemented through the developer to ensure ease of use and accuracy of information. Risk Management Approach for FGV Listed Subsidiary MSM, as a listed subsidiary of FGV, undertakes its risk management and control responsibilities through MSM’s Audit Committee, MSM’s Investment Committee and MSM’s Board Governance & Risk Management 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.