STEERING INTEGRITY AND ACCOUNTABILITY SEC 6 146 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL The Group adheres to a standardised framework for delineating, analysing, and reporting on all key risks within the Group. This comprehensive framework entails evaluating the likelihood of occurrence, potential impact on objectives, and employing a range of impact measures. Risk owners routinely assess and evaluate the effectiveness and adequacy of risk mitigations at FGV. The task of identifying, registering, assessing, and prioritising risks, considering their potential impact on individual businesses and operational objectives, falls under the purview of the respective risk owners. These risk insights are integrated into the daily operations, strategic planning and budgeting processes. The Risk Management Committee (RMC) assumes the responsibility of scrutinising and deliberating on the Group’s key risks, encompassing emerging risks. Subsequently, these are elevated to the Board Governance & Risk Management Committee (BGRMC) for acknowledgment and independent review. The outcomes of this rigorous process undergo further review by the Board, which relies on the risk management oversight matrix to instil confidence in the management of such risks. The Group also relies on the work of its Group Internal Audit for input on improvements of its risk management processes and identification of internal controls weaknesses related to mitigation of the key risks. HOW RISKS ARE MANAGED The Group has instituted a robust risk management process that encompasses two critical dimensions: identification of the Group’s key risks and the provision of reasonable assurance in managing those risks within defined risk appetite parameters. Anchored on ISO 31000 Risk Management Standards, this process is overseen by BGRMC. The BGRMC ensures that a strong risk culture is embedded within the Group and reviews the Group’s key risks, progress and mitigation measures. MANAGING RISK EFFECTIVELY The Group’s commitment to achieving strategic objectives is closely intertwined with its handling of risks, a key driver of the company’s success. At every organisational level, risk management is embedded into operational procedures with the overarching goal of establishing exemplary risk management practices. Internal awareness programs are routinely conducted to ensure that FGV’s workforce not only comprehends the fundamentals of risk management but also stays abreast of the Group’s evolving risk management practices. In addition to these initiatives, the Group has instituted a comprehensive governance, risk, and compliance structure. This structure serves as a robust framework, empowering management to oversee risks, processes, and controls. Acknowledging the pivotal role of effective risk management in guiding informed decision-making processes aligned with corporate goals, the Group has strategically positioned robust and agile risk management strategies as a fundamental cornerstone for its long-term success. Adopting a comprehensive risk approach provides the Group with the capability to safeguard its value proposition, proactively navigate potential threats to strategic and operational objectives, and capitalise on emerging opportunities. The central role of effective risk management in FGV’s decision-making processes is paramount, as it facilitates: The Board is pleased to present the Statement on Risk Management and Internal Control. The formulation of this statement is in alignment with relevant guidelines and listing requirements. 1 The prioritisation of planning efforts to ensure the successful delivery of its strategic objectives. 2 The consideration of potential risks and rewards when establishing and implementing controls in areas of critical importance. 3 Better focus of its assurance resources on specific areas of risk and uncertainty. 4 The pursuit of new opportunities while simultaneously managing risks in a rapidly changing external environment. 5 The adoption of best practices in accordance with the MCCG.
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