FGV Annual Report 2018

REINFORCED OUR STANDARDS OF GOVERNANCE 01 02 05 03 07 06 04 08 09 101 ANNUAL INTEGRATED REPORT 2018 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL FGV KEY INTERNAL CONTROL STRUCTURE Our integrated internal control framework ensures the necessary checks and balances are in place. The framework is applicable to all subsidiaries within the Group except for the joint venture companies and associates not managed by us. Nevertheless, 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 structures are as follows: Policies & Procedures Competency Ethics & Integrity Authority & Responsibility Information & Monitoring KEY INTERNAL CONTROL Risk Management Framework Roadmap Various initiatives were undertaken to strengthen the framework under the two-year implementation roadmap, which included adoption of 14 key recommendations. Location Based Crisis Management Inaugural LBCM exercise was simulated at Bandar Sahabat, involving participation of companies under FGV and local authority bodies. The aim of the exercise was to prepare the Group for uncertainties and minimise the impact of disruption to the operations. Enterprise Risk Management System and Risk Register Training ERM system awareness and risk register training sessions were conducted to educate staff on ERM system functionalities and provide facilitation on risk assessment process. Review of Risk Registers Existing risk registers were reviewed jointly with the respective risk owners or via a table top approach, to ensure the analysis and corresponding mitigation measures and action plans were effective and adequately documented. Business Continuity Management Awareness BCM awareness trainings were performed to educate staff on the objective of BCM, its policy and procedures as well as roles and responsibilities in the implementation of BCM. Business Continuity Plans Reviews and Business Continuity Management Testings BCP reviews were performed to ensure criticality of functions and business impact assessment were current and reflective of latest operational environment. BCM testings were conducted to enable assessment of the effectiveness and feasibility of identified recovery strategies for selected crisis or disaster scenarios and possible enhancements to address the gaps.