Shaped By High Standards Of Governance ANNUAL INTEGRATED REPORT 2022 161 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL The Board is pleased to present the Statement on Risk Management and Internal Control, pursuant to Chapter 15, Paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad and Principle B of the Malaysian Code on Corporate Governance (MCCG) 2021, with guidance from the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers. FGV’s success and unwavering commitment to achieving its strategic objectives are intrinsically linked to the effective management of its risks. The Group has incorporated risk management into its operational procedures at all levels of the organisation, with the ultimate objective of achieving exceptional risk management practices. To ensure that FGV’s employees understand the fundamentals of risk management and are kept abreast of the Group’s evolving risk management practices, internal awareness programmes are regularly conducted. Furthermore, FGV has implemented an integrated governance, risk and compliance structure that aids the Management in overseeing risks, processes and controls. The Group recognises that effective risk management is critical to drive informed decision-making processes that align with the overall corporate goals. FGV’s robust and agile risk management strategies serve as a strong foundation for its long-term success. Utilising a holistic risk approach, the Group is able to protect its value proposition while proactively managing potential threats to the delivery of its strategic and operational objectives, while also capitalising on new opportunities. Effective risk management is central to the Group’s decision-making process as it enables: • The prioritisation of planning efforts to ensure the successful delivery of its strategic objectives. • The consideration of potential risks and rewards when establishing and implementing controls in areas of critical importance. • Better focus of its assurance resources on specific areas of risk and uncertainty. • The pursuit of new opportunities while simultaneously managing risks in a rapidly changing external environment. • The adoption of best practices in accordance with the MCCG. The Group employs a standardised framework for describing, analysing and reporting on all risks. This framework involves assessing the likelihood of occurrence and potential impact on objectives, using a variety of impact measures. The effectiveness and adequacy of risk mitigations are regularly evaluated by the risk owners. At FGV, risk owners are responsible for identifying, assessing and prioritising risks based on the potential impact on their respective businesses and operational objectives. These risk insights are then integrated into strategic planning and budgeting. The Risk Management Committee (RMC) reviews and deliberates on the Group’s key risks, including emerging risks, and escalates them to the Board Governance & Risk Management Committee (BGRMC) for discussion and acknowledgement. The outputs of this process are then reviewed by the Board, which relies on the risk management oversight matrix to gain confidence in the management of such risks. Each business unit manages risks on a day-to-day basis using appropriate mitigations, while the Group provides oversight and monitors these activities for governance and compliance. Group Internal Audit provides independent assurance of these risk management activities. MANAGING RISK EFFECTIVELY
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