FGV Annual Report 2018

102 REINFORCED OUR STANDARDS OF GOVERNANCE FGV HOLDINGS BERHAD STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL POLICIES AND PROCEDURES Our commitment towards internal control is clearly defined in our formal Policies and Procedures, which include the Company’s Code of Business Conduct andEthics. Such controls are extended to and implemented by 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. ISO 9001:2015 has given greater emphasis on management of risk in 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 FGV is committed in applying the highest standard of ethical conduct and integrity in conducting its business activities by putting in place adequate Policies and Procedures as the fundamental for internal control. The strong commitment of the Group in upholding integrity is evidenced by: • Code of Business Conduct and Ethics for Employees • External Gift, Entertainment & Hospitality Policy • Asset/Personal Interest Declaration Policy • Whistleblowing Policy and Procedures INFORMATION AND MONITORING Our performance against our business plan and annual budget ismeasured andmonitored through the followingmechanisms: AUTHORITY AND RESPONSIBILITY • Organisation Structure The Group has maintained its organisation structure in 2018 with four main Sectors, namely Plantation Sector, Logistics & Support Businesses Sector, Sugar Sector and Corporate Services Sector whilst Corporate Centre Divisions continue to provide support to the businesses. • Discretionary Authority Limits In line with the effort in improving internal control, the Discretionary Authority Limits is continuously reviewed and updated to promote organisational efficiency whilst ensuring that it is aligned to the Group’s way of doing business and tolerance for risk. Discretionary Authority Limits establishes a sound framework of authority and accountability within the Group, including the segregation of duties, which facilitates timely, effective and quality decision-making in addition to stricter financial controls. The review of Discretionary Authority Limits in 2018 was undertaken and approved by the Board in August. • Legal Authority Limit and Signing Protocol Legal Authority Limit and Signing Protocol authorizes Group’s personnel with defined official responsibilities to approve legal services related matters within the Group to ensure that all associated risks are effectively managed. Legal Authority Limit and Signing Protocol was approved on 28 August 2018. • Procurement Authority Limit Procurement Authority Limit refers to the authority granted to the Group’s personnel to approve and authorise procurement matters. The establishment of Procurement Authority Limit aimed to protect the Group’s interest and ensure transparency in decision making with respect to procurement. Procurement Authority Limit is embedded in the Group Procurement Policy which was last reviewed and approved on 28 March 2018. • Employee Approving Authority Group Employee Approving Authority was implemented in April 2015 to delineate the delegation of authority in respect of Human Capital related processes to ensure accountability across Business Sectors and Corporate Centre Divisions. Employee Approving Authority is designed to be in line with the organisation structure. • Group Human Resource Policies Group Human Resource Policies have been continually updated and revised throughout 2018 to provide guidelines on the approach adopted by the organisation to its employees concerning various aspects of employment. • Standard Operating Procedures Standard Operating Procedures for Human Capital processes were formulated in late 2016 and implemented since January 2017 to assist employees to carry out operations with the aim of achieving efficiency, quality output and uniformity of performance while reducing miscommunication and failure to comply with Group Human Capital Policies and Procedures. The StandardOperating Procedures have also been continually updated and revised throughout 2018. Tableau Online Performance Dashboard Financial and Operational Review 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. The Tableau performance dashboard covers both financial and operational parameters. The dashboard is reviewed by Group Chief Financial Officer (GCFO) and subsequently presented to the Group Management Committee on a monthly basis. The Group Chief Executive Officer (GCEO) and GCFO present the Group Quarterly Financial Statements and Operational Performance analysis to the Audit Committee and the Board for approval and subsequently released to Bursa Malaysia. In addition, monthly financial and operational reviews are conducted at Group Management Committee level.