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Broad risk area
Sub-broad risk
Key mitigation measures
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 couldsuffer
as a result of political changes or
instability in a country.
Major and unpredictable
changes in government
policies and regulations
affecting 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.
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 of regulatory
requirements from local
and abroad which affected
the Group policies and
procedures.
Pricing, sourcing of raw
material, dependence on
single customers and stiff
competition are the risks
facing by the Group.
The Group is exposed to
various financial risks relating
to baddebts, liquidity, interest
rates, foreign exchange and
commodity prices.
Accountabilities
Board and Group MD.
Heads
of
Divisions,
Departments and Business
Units.
GroupMD and CFOcascading
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.
Kumpulan Fima Berhad
(11817-V)
Annual Report 2019
90