FGV Annual Report 2018

104 REINFORCED OUR STANDARDS OF GOVERNANCE FGV HOLDINGS BERHAD RISK MANAGEMENT APPROACH FOR FGV’S LISTED SUBSIDIARY MSM Malaysia Holdings Berhad (MSM), as a listed subsidiary of FGV, undertakes its risk management and internal control responsibilities through it’s Audit Committee, Investment Committee and Board Governance & Risk Management Committee for subsequent deliberation at MSM’s Board. Any risks identified as having significant impact on FGV Group are reported to the Board Governance & Risk Management Committee and where it has direct impact to the financial performance of the Group, is reported directly to the Audit Committee, and subsequently to FGV’s Board. REVIEW OF STATEMENT BY EXTERNAL AUDITORS As required by Paragraph 15.23 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the external auditors have reviewed this Statement on Risk Management and Internal Control. Their limited assurance review was performed in accordance with Audit and Assurance Practice Guide (AAPG) 3 issued by the Malaysian Institute of Accountants. AAPG 3 does not require the external auditors to form an opinion on the adequacy and effectiveness of risk management and internal control systems of the Group. STATEMENT BY THE BOARD Based on the processes and measures undertaken by the Board and its Committees during the financial year and reasonable assurance provided by the GCEO and the GCFO, the Board is of the view that the RMF and internal control system as described in this Statement were operating adequately and effectively in all material aspects to safeguard the interests of our Stakeholders. This Statement was made in accordance with the resolution of the Board dated 27 March 2019. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL