FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 138 HOW WE ARE GOVERNED OUR KEY INTERNAL CONTROL STRUCTURE We have in place an integrated framework of internal controls which applies to all subsidiaries within the Group except for joint venture companies and associates not managed by FGV. However, we ensure that our 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 our internal control structure are as follows: Policies and Procedures Our expectations regarding duty and integrity are clearly spelt out in formal policy manuals, which include the Company's Code of Conduct and Management Control Standards Manual. Such controls are extended and implemented at our subsidiaries . These policies and procedures are established with reference to International Standards such as, inter alia, ISO 9001, ISO 14001, OSHAS 18001, RSPO, HACCP, HALAL. The latest version of ISO 9001:2015 has given greater emphasis in managing risk within its operations. The Operational Policies and Procedures are reviewed periodically to remain effective and relevant to support the Group's business activities at all times as it continues to grow and transform locally and across borders. Both Group and Operational Policies also facilitate compliance to regulations, listing and governance requirements. Ethics and Integrity Ethics and integrity values are fundamental base of our internal control system. In the spirit of continuous improvement and enhance the internal control system, FGV has developed and enhanced the following policies: • Code of Business Conduct and Ethics for employees (COBCE) • External Gift, Entertainment & Hospitality Policy (GEH) • Asset/Personal Interest Declaration Policy (APID) • Whistleblowing Policy and Procedures Information and Monitoring Our performance against our business plan and annual budget is measured and monitored through the following mechanisms: • Tableau Online Performance Dashboard Selected key employees use the Tableau as an online performance dashboard to monitor the monthly business performance, to analyse and make appropriate business decisions with the view to achieve the Group's organisational goals. Tableau performance dashboard was introduced in April 2016 and covers both financial and operational parameters. • Financial and Operational Review The GP/CEO and the Group CFO present the Group Quarterly Financial Statements and the Operational Performance analysis to the Audit Committee and the Board for approval and subsequently released to Bursa Malaysia. Authority and Responsibility • Organisation Structure We organise our operations into six (6) Business Clusters, which are supported by Corporate Centre Divisions at FGV level. In achieving our strategic and business objectives, the Group has undergone several key transformational changes and an effective organisational architecture has been designed which combines employees in functions and product structures, across the Group's Business Clusters and Corporate Centre Divisions. A matrix reporting model has been designed and implemented within FGV Group which provides the following benefits: a. Clear segregation of roles and accountabilities which allowed a better focus and more efficient utilisation of resources. b. Centralisation and consolidation of key functions based on the Group Support Function's strategy and framework. ETHICS & INTEGRITY POLICIES & PROCEDURES COMPETENCY AUTHORITY & RESPONSIBILITY INFORMATION & MONITORING KEY INTERNAL CONTROL STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL