Statement on Risk Management and Internal Control The Board is pleased to present the Statement on Risk Management and Internal Control. The formulation of this statement aligns with relevant guidelines and listing requirements. MANAGING RISK EFFECTIVELY INTRODUCTION The Board of Directors of FGV (the Board) remains fully committed to safeguarding shareholder value, protecting the Group’s assets, and achieving its strategic objectives through a comprehensive and effective system of risk management and internal control. In compliance with the Main Market Listing Requirements (MMLR) of Bursa Malaysia Securities Berhad (Bursa Securities), this Statement on Risk Management and Internal Control (SORMIC) outlines FGV’s approach to identifying, assessing, and mitigating risks, while maintaining robust internal control measures to ensure regulatory compliance, business resilience, and long-term sustainability. This statement is made in line with the Malaysian Code on Corporate Governance 2021 and Practice 9.1 of the MMLR, wherein the Board affirms that it has implemented sound risk management and internal control systems for the financial year ended 31 December 2024. RISK MANAGEMENT FRAMEWORK FGV’s Risk Management Framework, aligned with ISO 31000:2018, is structured to integrate risk identification, assessment, and mitigation into business decision-making. This approach enhances resilience, promotes clarity, and ensures proactive risk management in support of FGV’s strategic objectives. It focuses on: MONITORING AND REVIEW The monitoring and review process tracks the current status of the risk profile, identifies changes in the risk context and indicators, and ensures that the controls are adequate in both design and operation. ESTABLISH CONTEXT Establishes the strategic, organisational and risk management process context by considering the environment within which the risks are present. RISK IDENTIFICATION Identifies uncertainty arising from risk events that may impact the achievement of objectives, which form the basis for further analysis. RISK ANALYSIS Assesses 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. RISK EVALUATION Establishes an understanding of the risks by considering the relationships between the causes, risks and effects and thus enable the evaluation of key risk mitigations. PROCESS RISK REPORTING RISK ASSESSMENT PHASE 1 PHASE 2 PHASE 3 PHASE 4 RISK TREATMENT Identifies controls and responses to manage inherent risks to an acceptable residual risk level. PHASE 5 Communicate and consult with internal and external stakeholders, as appropriate, throughout the risk management process. 4 Monitoring and Assurance Continuously evaluating the effectiveness of risk management strategies and implementing corrective actions when necessary. 5 Periodic Reporting Providing regular updates to Management and the Board on significant risks, mitigation efforts, and assurance measures to ensure transparency and accountability. 1 Understanding the Risk Landscape Conducting thorough assessments to identify specific risks and potential exposures. 2 Decision-Making on Risk Mitigation Determining the most suitable approach to address identified risks and minimise potential exposures. 3 Implementation of Risk Management Methods Applying targeted measures to manage identified risks effectively. 224 FGV Holdings Berhad | Annual Integrated Report 2024
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