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Kumpulan Fima Berhad (11817-V) •
Annual Report 2018
In line with the achievement of the above objectives, the RMC has undertaken the following activities:
(a)
Reviewed the extent of the controls and measures which have been put in place by each Risk Management Unit (“RMU”)
to ensure the risks are managed to an acceptable level. Below are the steps of ERM conducted within the Group:
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
(b)
Heightened risk awareness culture in the business processes through risk owners’ accountability and sign-off for action
plans and continuous monitoring;
(c)
Compilation of the business units’ risk profiles in relation to the Group’s risk parameters, the top risks from each business
segment and reported to the RMC for review, deliberation and approval; and
(d)
Fostered a culture of continuous improvement in risk management through risk review meetings and provided a system to
manage the central accumulation of risk profiles data with risk significance rating for the profiles as a tool for prioritising
risk action plans.
The Board retains the overall risk management responsibility in accordance with Best Practice of the Malaysian Institute of
Corporate Governance, which requires the Board to identify principal risks and ensure the implementation of appropriate
systems to manage these risks.
The ERM framework adopted by the Group encompasses the risk assessment process, organisational oversight and reporting
function to instil the appropriate discipline and control by continuously improving risk management capabilities. Risk
assessment, monitoring and review of the various risks faced by the Group are a continuous process within the key operating
units with the RMC playing a pivotal oversight function.
frame of
reference
Business
Objectives
Hierarchy
Organisation
Hierarchy
Vision
external
risks
internal
risks
aligned
Strategic Objectives
& Goals
Operational Goals &
Targets
BOARD
(Executive
Management )
Divisions & SBU
(Senior Management &
Mid-management )
Operation/Functions
(Executives & Staff)
1. Each RMU
updates the Risk
Profile indicating
the current
condition of each
risk and plan
2. Risk
Management
Coordinator
compiles
all the Risk
Profiles
3. RMC
review the
Risk Profiles
together with
RMU annually
4. Risk Profiles
updated with
the updated
controls and
measures to
be taken
5. RMU to
monitor and
report on the
controls and
the condition
of each risk