FGV Annual Report 2020

231 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders Board Ensures that there are systems in place that effectively monitor and manage these risks Board Governance & Risk Management Committee is tasked with directing and overseeing the formulation of a structured mechanism in the Group to inculcate a strong governance, ethical, integrity and risk management culture within the Group. Audit Committee is tasked with assessing the effectiveness of the system of internal control vis-à-vis the risks, control environment and compliance requirements of the Group. Investment Committee is tasked with ensuring investments undertaken are aligned to the Group’s objectives, vision and overall risk appetite. Nomination and Remuneration Committee is tasked with ensuring that the Group’s remuneration framework attracts and retains the right talent with appropriate competencies to ensure organisation capability and human resources. Board Tender Committee is tasked with reviewing, monitoring and recommending to the Board significant matters related to procurements of the Group in line with the Group Procurement Policies and Procedures. Our Risk Management Framework The Board believes in the independence of the governance and risk functions performed by the Group Governance & Risk Management Division that it reports directly to the Board of Governance and Risk Management Committee (BGRMC). Our risk management is anchored by a Risk Management Framework that recognises the need to systemically manage and regularly review FGV’s risk profile at strategic, financial, compliance and operational levels. The framework seeks to minimise risk incidents and maximise business outcomes by allowing us to: • Understand the risk environment and assess the specific risks and potential exposure. • Determine how best to deal with these risks to manage overall potential exposure. • Manage the identified risks in appropriate ways. • Monitor and seek assurance on the effectiveness of themanagement of these risks and intervene for improvement where necessary. • Escalate to the Management and Board on a periodic basis how significant risks are being managed, monitored, assured and mitigated. More details of the Board Committees’ Terms of Reference are published on our website www.fgvholdings.com Risk Owners Group Governance & Risk Management Division Group Management Committee Board Governance & Risk Management Committee Board of Directors An overview of Risk Reporting Architecture is depicted below: