FGV HOLDINGS BERHAD | ANNUAL INTEGRATED REPORT 2023 153 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL ADEQUACY AND EFFECTIVENESS During the year under review, the Board’s evaluation of the sufficiency and efficiency of the risk management and internal control framework relied on quarterly reports and detailed Board papers from the BGRMC as well as the AC and other board subcommittees. The Board also entrusted the Group Internal Audit function with independently evaluating the adequacy and effectiveness of governance, risk management, and controls implemented by Management. Recommendations stemming from these internal audits are continuously adopted by Management to enhance the risk management process and internal controls. MATERIAL JOINT VENTURES AND ASSOCIATES The disclosures within this statement do not encompass the risk management and internal control practices of the Group’s significant joint ventures and associates. To safeguard the Group’s interests in these entities, representatives are appointed to the respective Boards of Directors, or nominated representatives serve in this capacity. Furthermore, when deemed necessary, the Board ensures the acquisition and review of key financial and pertinent information concerning the performance of these entities. RISK MANAGEMENT APPROACH FOR FGV’S LISTED SUBSIDIARY MSM Malaysia Holdings Berhad (MSM), being a publicly listed subsidiary of FGV, carries out its risk management and internal control duties through its Investment Tender Committee and Board Audit, Governance, and Risk Committee. The outcomes of these processes are then presented for consideration by MSM’s Board. Risks identified with a substantial impact on the FGV Group are reported to FGV’s BGRMC. If these risks directly affect the financial performance of the Group, they are relayed directly to FGV’s AC and subsequently to FGV’s Board for further assessment and decision-making. REVIEW OF THIS STATEMENT BY THE EXTERNAL AUDITORS Under the provisions of Paragraph 15.23 of the Bursa Malaysia Securities Berhad Main Market Listing Requirements, the external auditors have conducted a review of the Statement on Risk Management and Internal Control. Their examination, conducted with limited assurance, adhered to the guidelines outlined in Audit and Assurance Practice Guide No. 3 (AAPG3) as issued by the Malaysian Institute of Accountants (MIA). AAPG3 does not mandate the external auditors to provide an opinion on the sufficiency and effectiveness of the Group’s risk management and internal control systems. THE BOARD’S CONCLUSION The Board reports that the state of the group’s risk management and internal control framework effectively facilitates the Group in managing its risks while aligning with its strategic plans and business objectives. Assurances from the Group Chief Executive Officer and Group Chief Financial Officer confirm that the Group’s risk management and internal control framework operate adequately and efficiently across all material aspects. This statement was made in accordance with a resolution of the Board approved on 27 March 2024.
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