FGV Annual Report 2020

232 FGV HOLDINGS BERHAD Annual Integrated Report 2020 Statement On Risk Management And Internal Control More details on the links between material matters, strategy and risks can be found on pages 85 to 91. Risk Management Process FGV manages, monitors and reports on the key risks and uncertainties that can impact our ability to deliver our strategy while creating shareholder value. Our management systems, through our organisational structure, policies and procedures, core values and code of conduct, together form a system of internal control that governs how we operate the business of FGV and manage associated risks. Our risk management process is supported by policies and procedures that are consistent with the ISO 31000 Risk Management Standard, developed to aid employees in undertaking their risk management responsibilities. RISK ASSESSMENT RISK REPORTING Communicate and consult with internal and external stakeholders, as appropriate, at each stage of the risk management process. 1 Establish Context Establish the strategic, organisational and risk management process context by considering the environment within which the risks are present. Phase 2 Risk Identification Identify uncertain future risk events that may impact the achievement of objectives, which form the basis for further analysis. Phase 3 Risk Analysis Assess risks in terms of impact and probability, and plot them on the FGV risk matrix to derive a prioritised list of risks for further action. Phase 4 Risk Evaluation Establish an understanding of the risks by considering the relationships between the causes, risks and consequences and thus enable us to evaluate key risk- mitigating controls. Phase 5 Risk Treatment Identify controls and responses to manage inherent risks to an acceptable residual risk level. Assess the effectiveness of mitigating controls in collaboration with the relevant risk and control owners. Phase MONITORING AND REVIEW The monitoring and review process tracks the current status of the risk profile, detects changes in the risk context and ensures that the controls are adequate in both design and operation.