KUMPULAN FIMA ANNUAL REPORT 2018

8 8

Corporate GovernanCe

The Group’s risk management context and accountability framework are expressed as follows:

Strategic risks

Operational risks

Financial risks

Framework

Strategic risks are primarily

risks caused by events that

are external to the Group, but

have a significant impact on its

strategic decisions or activities.

Operational risks are inherent in

the continuing activities within

the different business units or

subsidiaries of the Group.

Financial risk is an umbrella

term for multiple types of risk

associated with financing,

including financial transactions

that include the uncertainty of

a return and the potential for

financial loss.

Exposure

Compliance

regulatory

requirements from local and

abroad which affected the

Group policies and procedures.

Pricing, sourcing of raw

material,

dependence

single customers and stiff

competition are the risks facing

by the Group.

The Group is exposed to

various financial risks relating

to bad debts, liquidity, interest

rates, foreign exchange and

commodity prices.

Accountabilities

Board and Group MD.

Heads of Divisions, Department

and business units.

Group MD and Chief Financial

Officer cascading to all Heads

of business units.

Amidst delivering growth for its stakeholders, the Group will continue its focus on sound risk assessment practices and

internal control to ensure that the Group is well equipped to manage the various challenges arising from the dynamic business

and competitive environment.

WHISTLEBLOWING POLICY

To reinforce the culture of good business ethics, the Group has also introduced a whistleblowing framework and policy to

provide an avenue for stakeholders and employees to raise genuine concerns internally or report any suspected breach or

wrongdoing, which includes fraud, misappropriation of assets, breach of any law or regulation, including the Group’s policies

and procedures, to the Group MD and/or Chairman of Audit Committee without fear of reprisals.

Procedure

Any concerns should be raised with immediate superior. If for any reason, it is believed that this is not possible or appropriate,

then the concern should be reported to the Group MD:

Name

: Dato’ Roslan bin Hamir

Via Email

whistleblowing@fima.com.my

Via Mail

: Kumpulan Fima Berhad

Suite 4.1, Level 4, Block C, Plaza Damansara

No 45, Jalan Medan Setia 1, Bukit Damansara

50490 Kuala Lumpur

Attention: Group Managing Director

(to mark as “Strictly Confidential”)

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL