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Statement on Risk Management
and Internal Control
(d)
Reported on a quarterly basis to the ARC on significant risk management, control and governance issues from the
internal audit reports issued, the results of investigations and special reviews undertaken and the results of follow-
up of matters reported.
(e)
Reported on a quarterly basis to the ARC the achievement of the audit plan and status of resources of the GIA
function.
(f)
Conducted regular follow-up and monitoring on the implementation of recommendations made by the GIA
function to ensure that appropriate corrective actions are taken on a timely basis or within agreed timelines.
(g)
Reviewed the procedures relating to related party transactions entered into by the Group to ensure that the related
party transactions have been conducted on the Group’s normal commercial terms and are not to the detriment of
the Group’s minority shareholders.
(h)
Revised GIA’s Standard Operating Procedures.
(i)
Reviewed compliance with MS2530-3:2013 Malaysian Sustainability Palm Oil (“MSPO”) Certification Standard of
Part 3: General Principles for Oil Palm Plantations and Organised Smallholders requirements for all estates operated
by the Group.
(j)
Preparation of Audit and Risk Committee Report and Statement on Risk Management and Internal Control for the
Company’s 2019 Annual Report.
During FYE2020, sixteen (16) internal audit reports were issued on various operating units of the Group covering reviews
on control environment, risk management, revenue assurance, procurement, finance, human resource, occupational
safety and health and MSPO regulatory compliances and operations.
5.
ENTERPRISE RISK MANAGEMENT (“ERM”)
The Group’s risk management framework is generally aligned with the principles of MS ISO 31000:2010 Risk Management
– Principles and Guidelines, encompassing the features such as risk management processes, organizational oversight
i.e. the accountability and responsibility for each reporting functions, and continual improvement of the framework.
The framework provides the foundation and arrangement for the Group in managing the risks adequately. Systematic
approach and process in managing risks and risk mitigation plans such as risks identification, evaluating, treating,
monitoring, reviewing and reporting have been developed and further defined in the risk management policies and
procedures which offers guide to risk owners in implementing effective and efficient risk management aligned with the
business objectives.
The Risk Management Committee which has been renamed as Risk Steering Committee (“RSC”) on 24 July 2020, is
established to assist the Board, ARC and Management in implementing effective risk management activities for the
Group. The RSC principally conducts the risk review process across the business units within the Group and ensure
that the process of assessing risk, control and governance, including operational and financial controls, business ethics
and compliance, are properly managed and monitored according to the ERM policies and procedures. The ARC after
conducting overall ERM implementation review, is satisfied with the RSC effectiveness in facilitating the ERM activities for
the group during the financial year.
The RSC communicates to the Management, ARC and the Board the present and potential critical risks the Group faces,
their changes and the Management action plans to manage these risks. The RSC is assisted by the GIA in facilitating the
implementation and monitoring of the risk management activities. Below is the structure of ERM reporting established
within the Group.
Annual Report 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
108