FGV Annual Report 2018

98 REINFORCED OUR STANDARDS OF GOVERNANCE FGV HOLDINGS BERHAD 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: 1 4 5 2 3 Board Governance & Risk Management Committee 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. Nomination and Remuneration Committee 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. Board 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 Limit and Group Procurement Policies and Procedures. Audit Committee 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. Investment Committee is tasked to ensure investments undertaken are aligned to the Group’s vision and overall risk appetite. For further details of the Board Committees’ Terms of Reference are published on website www.fgvholdings.com RISK MANAGEMENT FRAMEWORK An overview of the Risk Management Framework is depicted below: The 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 Board on a periodic basis on how significant risks are being managed, monitored, assured and improved. Risk Owners Group Risk Management Division Group Management Committee Board Governance & Risk Management Committee Board of Directors