FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 139 HOW WE ARE GOVERNED • Group Discretionary Authority Limits (DAL) In linewith the effort of continually improving internal controls, theGroupDAL 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. The Group DAL establishes a sound framework of authority and accountability within the Group, including segregation of duties, which facilitates timely, effective and quality decision-making in addition to stricter financial controls. The last review of Group DAL was recently undertaken, and approved by the Board on 22 November 2016. • Employee Approving Authority (EAA) Group EAA has been implemented in April 2015 to ensure accountability across Business Clusters, Corporate Centre Divisions and subsidiaries. It defines the delegation of authority in respect of HR related processes and shall be read together with the Group DAL. • Job Description Each role in the organisation structure is supported by clear description of job responsibilities which are linked to the vision and goals of the Group. A well developed and effective job description has been designed for clarity of responsibilities and relationship between functions which will enhance collaboration across the Group moving towards operational efficiency besides supporting the future people planning. It can retain and motivate the best talents by ensuring that employee's expectations are aligned with business expectations. Competency FGV's learning and development strategy aims to develop our workforce capabilities, skills and competencies to create a sustainable and successful organisation. It is an important part of our overall business strategy which supports the management of change, enhances employee engagement and helps drive high performance culture. The learning and development programmes are based on FGV's three-pronged transformation strategy: • Enhancing Revenue • Cost Optimisation • Operational Excellence To meet the demands of the business and the industry, FGV requires a continuous supply of competent workforce. The following are training programmes developed for each level of FGV's workforce: a. Top Leadership Programmes for C-Suite encompassing Leadership Talk Series, In-House Courses and courses at renowned leadership centers. b. Senior Leaders Programme (SLP) This programme is designed primarily for FGV's senior management. c. Functional Leaders Programme (FLP) Middle Managers programme to upskill them to the next competency level. d. Trainee Programmes These programmes are designed to ensure continuation of talent especially in critical areas as follows: i. The Cadetship in Plantation Management Course (Cadet Planters) and Cadetship in PalmOil Mill Engineering Programme (Cadet Mill Engineers). ii. The Accountant Trainees programme towards achieving certifications of ACCA, CIMA, ICAEW or a Certified Internal Auditor. iii. The Management Trainees programme. e. Supervisors Programme Supervisors are the backbone of Palm Upstream Cluster. We ensure they are properly trained in their functional areas. Their role as front line leaders are very important in driving FGV's primary workforce is well led, engaged, productive and creates an innovative supportive culture. RISK MANAGEMENT APPROACH FOR FGV LISTED SUBSIDIARY MSM Holdings, as a listed subsidiary of FGV, undertakes its risk management and internal control responsibilities through MSM's Audit Committee, MSM's Investment Committee and MSM's Board Governance & Risk Management Committee for subsequent deliberation at MSM Board. Any risks identified as having significant impact on FGV group is reported to BGRMC and where it has direct impact to the financial of the Group, is reported directly to Audit Committee, and subsequently to FGV Board. REVIEWOF STATEMENT BY EXTERNAL AUDITORS Pursuant to Paragraph 15.23 of the Bursa Malaysia Securities Berhad Main Market Listing Requirements, the External Auditors have reviewed this Statement for inclusion in the 2016 Annual Integrated Report. Their review was performed in accordance with Recommended Practice Guide ("RPG") 5 (Revised) issued by the Malaysian Institute of Accountants. The External Auditor had reported to the Board that nothing has come to their attention that causes them to believe that the Statement is inconsistent with their understanding of the process adopted by the Board in reviewing the adequacy of the risk management and system of internal control. STATEMENT BY THE BOARD Based on the processes and measures undertaken by the Board and its Committees during the financial year and assurance provided by the GP/ CEO and the Group CFO, the Board is of the view that the risk management framework and internal control system as described in this Statement is operating adequately and effectively in all material aspects to safeguard the interests of our Stakeholders. This Statement is made in accordance to the resolution of the Board dated 29 March 2017. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL