FGV Annual Report 2018

REINFORCED OUR STANDARDS OF GOVERNANCE 01 02 05 03 07 06 04 08 09 87 ANNUAL INTEGRATED REPORT 2018 GOVERNANCE AT FGV: ACCOUNTABILITY BOARD GOVERNANCE & RISK MANAGEMENT COMMITTEE REPORT KEY MATTERS REPORTED TO THE BOARD The Board Governance & Risk Management Committee’s Chairman updated the Board on matters deemed to be a major importance deliberated at the Board Governance & Risk Management Committee meetings and its recommendations. The copies of confirmedminutes of each of the Board Governance & Risk Management Committeemeeting were also circulated to the Board for noting at the next practicable Board meeting. Amongst the significant matters considered by the Board Governance & Risk Management Committee during the year 2018 were as follows: Significant Matters How these Matters were Addressed by the Board Governance & Risk Management Committee Outcome on the Process Undertaken Project Risk Assessment • Guided the Steering Committee on the implementation of the initiatives under the Governance Quantum Leap project to realise the objective of improving corporate governance and business controls. • Took note the key measures implemented to remedy identified focus areas covering finance, internal control and company secretarial. • Deliberated on the key variables and potential impact arising from the simulated stressed scenarios to the company. • Acknowledged the extent of potential risk exposures to the Group arising from the exercise. • Recommended engagement with affected business sectors on mitigation actions to address the risks associated with the scenarios. • Deliberated and guided the execution of enhanced risk management process in relation to project proposals. • Approved the new project risk assessment template as part of proactive risk management approach to imbed risk into business decision making. • Recognised the roles of Group Risk Management Division to facilitate risk assessment by project owner while ensuring independence, quality and thoroughness of the exercise prior to approval by Investment Committee. Governance Quantum Leap Scenario Analysis • Group Risk Management Division implemented the new project risk assessment template in May 2018 in harmonisation with the risk management process. • Created awareness to the respective project owners on the risk assessment methodology. • FY2018, several project risk assessments were completed and signed off using the risk assessment template. • Engaged with the affected business sectors to identify appropriate responses and mitigation measures based on the assessed risk exposures. • Prepared and familiarised the affected parties with the appropriate response and mitigation measures. • Revised the existing Policies and Procedures for Receivables and Credit Management under Finance,DiscretionaryAuthority Limits, Delima Oil Products Sdn. Bhd. Credit Control Environment, Whistleblowing, Procurement & Tender Policies and other identified Policies and Procedures. • Strengthened Board oversight roles. • Approved and guided the implementation of new RAS for Upstream Cluster and additional five key risk drivers to Group RAS. • Reviewed and deliberated on the outcomes of risk profile rating and appropriate course of actions. Risk Appetite Statement • Tracked, assessed and reported the prevailing risk profile of the expanded Group and Upstream Cluster on a quarterly basis via the FGV Quarterly Risk Report, and if any actions required based on risk profiles.