PROMOTING ECONOMIC GROWTH SEC 2 42 PROMOTING ECONOMIC GROWTH KEY INITIAVITES OUTCOME Risk Appetite Statement (RAS) The Group enhanced its RAS framework by incorporating KRIs and establishing thresholds to assess corporate risk profiles. The assessment covered primary risk categories: geopolitical, catastrophic, market, strategic, financial, and operational, with a focus on trading functions. The Group RAS is a vital framework for informed decisionmaking, instilling confidence in risk navigation and integrating with key management activities. It serves as a governance mechanism for risk-taking, driving current and future business activities in line with strategic objectives. Enterprise Risk Management System (ERMS) Enhancement Project 2.0 This enhancement is a strategic initiative aimed at improving process ownership and efficiency. It includes key changes like better user experience, refining risk priority moderation, upgrading KRI status, implementing Bow-Tie Analysis, and integrating the Corruption Risk Management (CRM) module. The project also covers top risks nomination, escalation protocol, risk aggregation processes, and dashboard review. The Project successfully upgraded the ERMS methodology, process, and functionality, integrating the CRM module. This improved ERMS ensures higher-quality input for registered risk assessments, enhances risk reporting, facilitates ongoing and future reviews by respective risk register owners. Location-Based Crisis Management (LBCM) FGV conducted a LBCM exercise in ESSZONE, Sabah, to proactively address potential disruptions caused by militant threats to operations and businesses in Northern Sabah. The exercise aimed to focus on refining notification and escalation procedures, optimising decision-making efficiency, and increasing overall awareness of Business Continuity Management fundamentals amidst militant threat scenarios. The LBCM exercise underscored the necessity for improvements to bolster the preparedness and resilience of the participating companies. Regular awareness and training programmes, coupled with ongoing reviews and refinements of notification procedures, can deepen the participants’ understanding of crisis management. More information can be found in the Statement on Risk Management and Internal Control on page 148 of FGV’s Annual Integrated Report 2023. NEW INITIATIVES In 2023, we expanded the scope of our Whistleblowing channel to include foreign workers, providing them with a confidential and safe channel to report issues or concerns they may encounter in the workplace. This will further ensure the fair treatment and protection of our workers, leading to improved working conditions and overall well-being. GOING FORWARD We are committed to upholding good governance, ethics and integrity to ensure the long-term sustainability of our organisation. To enhance the understanding of governance, ethics and integrity among our employees, we will continue to provide comprehensive training across all employee categories. Furthermore, we will consistently communicate the Code of Business Conduct and Ethics and related policies and procedures to all employees. PROGRESS AND ACHIEVEMENTS IN 2022/2023 Integrity and Governance awards and achievements • Anugerah Integriti, Governans dan Anti-Rasuah (AIGA) 2023 by The Malaysian Institute of Integrity (IIM) - Silver and Bronze • Successfully underwent the re-certification of the ISO 37001 Anti-Bribery Management Systems (ABMS) with extended scope • The Malaysia Anti-Corruption Commission (MACC) re-rated FGV as MODERATE for 2020-2023, a change from the initial HIGH rating in 2019 2023 • Adequate Procedures Adequacy Assessment 2022 - Low Risk by Trident Integrity • Silver and Bronze Award by Anugerah Integriti, Governans dan Anti Rasuah (AIGA) • Establishment of Grievance Management Department 2022 FGV also has a Whistleblowing Policy, which serves as a grievance mechanism for stakeholders to report any instances of improper conduct without fear of punishment or reprisals. Stakeholders can file their complaints through alert@fgvholdings.com. In the period under review (from 2022 to 2023), we received 38 complaints related to corruption, of which 36 cases have been resolved while two remaining cases are currently under investigation. KEY INITIATIVES 2023 The key initiatives drive the implementation of framework and process methodology enhancements, fostering resilience and preparedness against key risk threat.
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