FGV Annual Report 2018

100 REINFORCED OUR STANDARDS OF GOVERNANCE FGV HOLDINGS BERHAD STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL Provide timely, accurate and comprehensive risk reports to Management and the Board, covering prevailing and emerging key business risks. Support informed decision making through quantified risk insights in assessing the Group’s risk profile and outlook. Implement a robust RMF and facilitate the risk assessment process for key business initiatives and project proposals while ensuring risk management approach is embedded into business decision making and aligned with the Group strategic vision and aspirations. Establish, maintain, review and monitor the risk registers including the mitigation plans via the ERM system. Provide awareness on system familiarisation and training on risk register to improve competency on risk management. Facilitate the development of Business Continuity Plans, coordination of BCM testings and crisis simulation exercises to strengthen the interdependencies among various recovery plans to minimise the impact in the event of a crisis. Promote strong BCM culture and awareness throughout the organisation. GROUP RISK MANAGEMENT DIVISION At the Management level, the Board is supported by a dedicated GRMD which undertakes the following responsibilities within the ambit of its Strategic and Operational Risk Management Departments: RISK MANAGEMENT KEY ACTIVITIES Continuous integration between strategies and risk management was carried out to ensure risk management approach is embedded into business decision making and aligned with the Group’s strategic objectives and aspirations. Listed below are the key risk management activities undertaken by GRMD to reinforce the risk management culture within the Group: Activities Description Quarterly Risk Reporting for FGV Group GRMD published its Quarterly Risk Report as a reporting tool to inform the Management, Board Committees and Board of the key risks horizon associated with the Group’s business and operations. Covering RAS, Top 10 and other key risks. Project Risk Assessment Assisted the business to perform risk assessments of various business and project proposals based on revised risk assessment processes which included a revamped template. GRMD ensured sound methodology is applied in the dimensioning and quantification of the relevant project or business risks. Risk Appetite Statement Implementation of RAS for the Upstream Cluster as a tool to measure business risk profiles using relevant key risk indicators. RAS is beneficial to ensure risks profiles are monitored based on a quantifiable methodology and measured against the risk tolerance levels. Five additional key risk drivers were also incorporated into the existing Group RAS to further strengthen the measure of the risk profile. Scenario Analysis Exercise The first Scenario Analysis exercise was conducted to analyse potential risk exposures arising from a prolonged decline in the CPO price, severe adverse weather and economic crisis scenarios. Revision of Policies Risk Management and BCM Policies were reviewed, revised and approved by the Board to ensure relevance of the requirements with the current operational and best practices. Divisional Risk Reporting Committee Meetings The Committee is established as a think-tank to address and update matters pertaining to risk management especially in relation to preparation of quarterly risk reporting. Dissolution of Governance Quantum Leap Project GRMD spearheaded and successfully implemented initiatives under the project which tightened finance Policies and Procedures, strengthened internal controls and enhanced Board oversight. RISK REPORTING & ANALYTICS RISK FRAMEWORK & REVIEW ENTERPRISE RISK MANAGEMENT SYSTEM BUSINESS CONTINUITY MANAGEMENT