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Kumpulan Fima Berhad (11817-V) •
Annual Report 2018
The top six (6) risk factors of the Group after considering its likelihood and its impact from both a financial and/or non-financial
standpoint are as follows:
Broad risk area
Sub-broad risk
Key mitigation measures
1. Business and operational
sustainability
Local and global competition,
economic slowdown factors
and invasion/demonstration
by the local community
due to conflict or cultural
belief adversely impact the
business operations.
Losing market share, business
interruption, products pricing
and marketing
• Monitoring of market/economic conditions.
• Strategic business plan based on market
conditions.
• Key marketing strategy for each division.
• Consistently participate in the local meetings
conducted by the community or authority
to ensure the company or community (vis-
versa) is well updated and informed about any
changes or new information or development.
2. Environment
Local and global weather
patterns, natural disasters,
diseases or crop pests and
stringent environmental and
conservation regulations.
Affect the prodcution due to
a lower supply of materials;
production
efficiency
and
product quality
• Constructed a flood mitigation system at the
flood prone areas.
• Establishing a safe wildlife corridor animals to
ensure they do not wander off into communal/
estate areas.
• Continuous manuring and pest and disease
preventive and corrective programmes.
3. Financial
Volatile exchange rates for
import and export.
Foreign exchange
• Foreign currency bank accounts.
• Foreign exchange hedging
4. Compliance
Internal
and
external
regulatory requirements.
Regulatory
• Constant monitoring for each department,
division and Group.
• Regular review in operational audit programme.
• Continuous updating of new regulatory
requirement.
5. Safety,
Health
and
Environment
Accident occurs to employees
or customers arising from
non-compliance with policies
and procedures leading to
injury or casualty.
Non-compliance of occupational,
safety, health and environment
(“OSHA”)
• The Safety, Health & Environment and
Emergency Response Policies & Procedures
have been established and implemented at
divisional level.
• Periodic compliance performance checking,
monitoring and reporting.
• Regular safety training dialogues and dedicated
SHE Committee/ Department.
6. Political
Investment's returns could
suffer as a result of political
changes or instability in a
country
Large
and
unpredictable
changes in government policy
and regulations effecting the
business
• Proactively engage with Government bodies
and authorities to strengthen the work
relationship and to be well informed and
updated, on any changes in regulations and
policies of the country.
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL