FGV Annual Report 2017

ANNUAL INTEGRATED REPORT 2017 HOW WE ARE GOVERNED 103 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL The Board Committees that support the Board in its risk management and internal control responsibilities are as follows: i Board Governance & Risk Management Committee (BGRMC) is tasked to direct and oversee the formulation of a structured mechanism in the Group to inculcate a strong governance, ethical, integrity and risk management culture within the Group. ii Audit Committee (AC) is tasked to assess the effectiveness of the system of internal control vis-à-vis the risks, control environment and compliance requirements of the Group. iii Investment Committee (IC) is tasked to ensure investments undertaken are aligned to the Group’s vision and overall risk appetite. iv Nomination and Remuneration Committee (NRC) is tasked to ensure that the Group’s remuneration framework attracts and retains the right talent with appropriate competencies to ensure organisation capability and human resource risks are managed. v Tender Committee is tasked to review, monitor and recommend to the Board significant matters related to procurements of the Group in line with FGV’s prevailing Discretionary Authority Limits (“DAL”) and Group Procurement Policies and Procedures. RISK MANAGEMENT FRAMEWORK An overview of the Group’s Risk Management Framework is depicted below:- BOARD OF DIRECTORS BOARD GOVERNANCE & RISK MANAGEMENT COMMITTEE EXECUTIVE COMMITTEE GROUP RISK MANAGEMENT DIVISION RISK OWNERS Our risk management framework seeks to minimise risk incidents and maximise business outcomes by allowing us to: • Understand the risk environment, and assess the specific risks and potential exposure. • Determine how best to deal with these risks to manage overall potential exposure. • Manage the identified risks in appropriate ways. • Monitor and seek assurance on the effectiveness of the management of these risks and intervene for improvement where necessary. • Escalate to the Management and the Board on a periodic basis on how significant risks are being managed, monitored, assured and improved. The full details of the Board Committees’ Terms of Reference are published in the Company’s corporate website at www.feldaglobal.com .