FGV Annual Report 2020

235 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders Project Risk Assessment (PRA) FGV Group Quarterly Risk Report (QRR) Scenario/Impact Analysis Risk Profile Monitor (RPm) Enterprise Risk Management System (ERmS) and Risk Register Training Policies and Procedures Corporate Governance Report Ethics & Integrity Awareness Programmes Business Continuity Management (bCm) Strengthened risk management process for key business decisions and project proposals by facilitating risk analysis as a prerequisite for GMC’s evaluation prior to Investment Committee’s approval. GGRM ensured all material risks in investment proposals are sufficiently captured and addressed by assessing and embedding appropriate risk management into decision making and applying sound methodology in the dimensioning and quantification of the relevant business or project risks. The QRR is a platform utilised to report to Management and Board on key risks affecting the Group within and beyond a particular quarter. The risk report is generated by working closely with relevant business owners and stakeholders covering FGV Group Top 10 Risks, strategic risks, reputational risks, emerging risks, Risk Profile Monitor, Key Incidents Report and key governance and risk management activities, supplemented by monthly one-pager risk and governance summaries. Scenario Analysis is a forward-looking exercise undertaken to gauge an organisation’s resilience and preparedness during an unexpected crisis that bears potential catastrophic impact on the organisation. This exercise is applied on various topical issues. Additionally, Impact Analysis is an exercise performed to gauge the risks and probable impacts arising from current events. Several events were chosen whereby analysis was conducted, namely pandemic-led recession, global economic slowdown and Malaysia’s political scenario. GGRM revamped and replaced the previous Risk Appetite Statement (RAS) with RPM which provides a wider scope of risk drivers encompassing fields such as economics, strategic and global issues that were insufficiently addressed in previous RAS. The rating of each driver is derived from its outlook which strengthened the forward- looking perspective of the risk profiler. ERMS awareness and risk register training sessions were conducted to educate staff on system functionalities and provide facilitation on the risk assessment process. ERMS training was provided to both new users as well as existing users who required refresher courses that were suitable for their roles as risk owners, risk champions or reviewers/approvers. Users were educated on the detailed risk assessment process including data entry as well as escalation flow of risks up to their respective sectors in ensuring smooth updates of their risk registers every quarter. In such sessions, GGRM also took the opportunity to explain how their entries contributed towards selection and compilation of sectoral and Group’s top risks for reporting to Senior Management and the Board. Facilitated the formulation of new and revision of policies and procedures by ensuring compliance to ‘Mother Policy’, conducted challenge process and worked closely with policy owners until approval was obtained from the Board. Approved policies and procedures were deposited into the Compliance Management System. GGRM completed the review of the Corporate Governance Report on Practice 3.1, 3.2, 9.1 & 9.2 in compliance with MCCG 2017 Best Practices. Conducted ethics & integrity initiatives including whistleblowing awareness programmes to educate FGV employees through online sessions, e-mail blasts, posters and the GGRM Hub. BCP reviews were performed to ensure the criticality of functions and business impact assessments were current and reflective of the latest operating environment. BCP testing was conducted to ensure that FGV was capable of managing any risk event and able to handle disruptions in its critical activities and functions. BCM awareness training was conducted to educate staff on the objectives of BCM, its policies and procedures, as well as roles and responsibilities in the implementation of BCM. In compliance to the movement control orders by the authorities and policy on safe physical distancing, GGRM switched to an online platform approach where practical, to conduct BCP testing (e.g. call tree test) and awareness training sessions. OuR GOVERNANCE AND RISk mANAGEmENT CuLTuRE Listed below are other key initiatives undertaken by GGRM to reinforce the governance and risk management culture within the Group. Further details on the links between material matters, strategy and risks can be found in Section 3 of this report.