Mitigating Actions • Continuous Monitoring: Implement 24/7 Managed Security Services (MSS) for threat detection and response. • Risk and Vulnerability Assessment: Conduct regular digital risk reviews to identify and mitigate vulnerabilities. • Penetration Testing: Perform testing systems, networks, and applications to address security weaknesses. • Business Continuity: Conduct Cyber Drill exercises to ensure critical information technology systems remain operational during disruptions. • User Awareness: Conduct security training sessions and awareness to enhance cybersecurity safe and good practice. How it Affects FGV How it Affects FGV How it Affects FGV The operational efficiency of mills and refineries utilisation rate and their processing cost are influenced by various factors such as feedstock availability and pricing, equipment reliability, employee competency and energy supply and consumption. Plantations yields and fresh fruit bunch (FFB) production costs are driven by factors including labour availability, tree maturity profile, fertilisation rates, pests, crop diseases and weather patterns, affecting FFB production and recovery across FGV’s plantations at different rates. Digital infrastructure is vital for connectivity and widespread device utilisation within FGV, offering significant benefits. Cyber threats like malware attacks, security vulnerabilities, unsecured Wi-Fi networks, weak passwords, and poor user practices pose significant risks to system operability and security. FGV’s estate operations rely on migrant labour supply, and FGV’s steadfast commitment to strict ethical recruitment standards and consequently lengthy hiring process poses a challenge in ensuring consistent labour adequacy and competency, impacting estate operations and productivity. Mitigating Actions • Market Expansion: Explore new market segments and consumers. • Product Diversification: Expanded product lines through research & development to enter niche markets. • Preventive Maintenance: Ensure reliability of equipment by completing preventive maintenance exercises as scheduled. • Enhance Mechanisation: Promote the use of mechanisation in suitable estate areas to reduce reliance on manual labour. • Optimise Fertilisation: Ensure timely and thorough implementation of all fertilisation programmes as scheduled. • Uphold Agricultural Best Practices: Enforce adherence to good agricultural practices consistently. • Ensure Accessibility: Sustain year-round accessibility to estates by ensuring roads & bridges are well-maintained. • Employee Competency: Foster continuous development by promoting regular training, mentorship from experienced workers, and conducting regular performance assessments to enhance employee skills and competencies. Mitigating Actions • Mechanisation & Efficiency: Increase mechanisation and structured crop recovery to enhance harvesting efficiency and reduce labour reliance. • W ork Environment: Improve working and living conditions through Corporate Social Responsibility (CSR) programmes, centralise the initiation center and upgrade workers’ quarters. • W orkforce Welfare: Implement salary incentives, regularise undocumented migrant workers, and subsidise passport renewals. • E thical Recruitment: Strengthen the due diligence process for appointing compliant recruitment agents in source countries. • Authority Engagement: Build strong relationships with local and foreign authorities. Yield & Plant Efficiency Cybersecurity Threats Labour Shortage OPERATIONAL RISK OR INFORMATION TECHNOLOGY RISK IT 228 FGV Holdings Berhad | Annual Integrated Report 2024 Statement on Risk Management and Internal Control
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