FGV Annual Report 2018

REINFORCED OUR STANDARDS OF GOVERNANCE 01 02 05 03 07 06 04 08 09 103 ANNUAL INTEGRATED REPORT 2018 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL REVIEW OF RISK MANAGEMENT AND INTERNAL CONTROL In the spirit of ensuring continuous improvement of risk management and internal control system, FGV conducted the following review processes in the financial year: Business units in collaboration with GRMD conducted assessment on the effectiveness of controls over key risk areas surrounding its operations and other initiatives. The exercise was meant to ascertain whether the emplaced controls were adequate and operating as intended or require improvement in order to fully address the identified gaps. GRMD coordinated the quarterly review of risk registers with the business units to ensure changes in the risk profiles were captured in the ERM system, assessed and evaluated as well as appropriate mitigation measures being formulated. GRMD facilitated business units to assess and evaluate risks associated with project proposals to enable formulation of appropriate mitigation plans to be put in place. Group Internal Audit Division conducted regular and systematic reviews to provide an independent and objective assurance to the Audit Committee and Management, focusing on the adequacy and effectiveness of control over governance, risk management and processes. GRMD together with the BCM Coordinators across the Group performed annual Risk Assessment and Business Impact Analysis to assess the criticality of a function. Additionally, regular reviews on business continuity plans were carried out to ensure recovery strategies were workable and relevant with the current business operations environment. GRMD tabulated the outcomes of the key risk indicators associated with the RAS to score the overall risk profile of the Group on a quarterly basis and ensured the business was pursued within an acceptable level of risk. Scenario Analysis Exercise was a stress testing approach, undertaken to quantitatively gauge the potential key risk exposure and material capital impacts to the Group. The exercise also reviewed the effectiveness of mitigation measures to ascertain the Group’s readiness and resilience towards the simulated worst case scenario. Assessment of Controls Review of Risk Register Project Risk Assessment Independent Group Internal Audit Review Business Continuity Plan Review Risk Appetite Statement Scenario Analysis COMPETENCY In order to ensure business sustainability and continuous supply of a competent workforce, we have established FGV Academy. FGV Academy aims to drive Human Capital excellence on the people and processes and create smart integration for all learning and development activities within the Group with the goal of: i. Positively impacting the business in the areas of operational excellence, enhancing revenue, cost optimization, talent development and employee engagement. ii. Creating a learning and development branding to boost FGV’s corporate image. iii. Establishing sustainable Human Capital development programmes that are aligned with FGV’s mission to create value through our people.