FGV Annual Report 2015

148 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 REVIEW OF RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM To ensure ongoing effectiveness monitoring of the Risk Management and Internal Control System, FGV conducted the following review processes in the financial year: • Assessment of Controls All risks identified are reviewed on a quarterly basis by the Risk owners and Risk Champions. The effectiveness of the corresponding controls to mitigate these risks is measured by monitoring and updating the outcome of these controls against the desired objectives. These quarterly updates are then reviewed by the respective Heads of Subsidiaries, Corporate Centres and Clusters and finally by the Group President/CEO prior to reporting to the BGRMC. • Review of Risk Register The Group’s Risk Register is reviewed by GRMD on a quarterly basis to ensure accordance to the policies and procedures. Additionally, GRMD conducted several Risk Register Reviews on specific subsidiaries and Corporate Centres to identify and communicate improvement opportunities in the individual Risk Registers. • External Review of Risk Management To improve on the adequacy and effectiveness of the Risk Management Framework, FGV appointed an external consultant specifically to review the Risk Management Framework in its entirety. The methodology of this review includes identifying gaps through interviews, surveys and comprehensive document analysis to ensure the Group’s Risk Management framework is in line with best practices and standards. • Independent Group Internal Audit Review The Group Internal Audit Division (GIA) conducts regular and systematic reviews to provide an independent and objective assurance to Audit Committee and management, focusing on adequacy and effectiveness of the governance, risk management and control processes in place. GRMD takes a serious view the findings from GIA to further improve the Group’s risk management and control processes. GRMD has been progressively implementing recommendations from the GIA report to improve its risk management role to the Group with the latest report issued in the first quarter of 2016. REVIEW OF STATEMENT BY EXTERNAL AUDITORS AND GROUP INTERNAL AUDIT (GIA) As required by Paragraph 15.23 of the Bursa Malaysia Securities Berhad Main Market Listing Requirements, the external auditors have reviewed this Statement on Risk Management and Internal Control. Their limited assurance review was performed in accordance with Recommended Practice Guide ("RPG") 5 (Revised) issued by the Malaysian Institute of Accountants. RPG 5 (Revised) does not require the external auditors to form an opinion on the adequacy and effectiveness of the risk management and internal control systems of the Group. CONCLUSION Based on the processes and measures undertaken by the Board and its Committees during the financial year and assurance provided by the Group President/Chief Executive Officer and FGV Chief Financial Officer, the Board is of the view that the risk management framework and internal control system as described in this Statement is sound and effective to safeguard the Shareholders’ investment and the FGV Group’s assets. This Statement is made in accordance to the resolution of the Board dated 29 March 2016. Statement on Risk Management and Internal Control