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 and the Audit Committee (AC) as well as other board subcommittees. The Board has also entrusted the Group Internal Audit function to independently evaluate 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 and Tender Committee, and 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 Securities’ MMLR, 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 Based on the processes and measures undertaken by the Board and its Committees during the financial year and assurances provided by the Group Chief Executive Officer and Group Chief Financial Officer, the Board is of the view that the Group’s risk management and internal control framework as described in this Statement operates adequately and effectively across all material aspects to safeguard the shareholders’ investment and FGV Group’s assets. This Statement was made in accordance with a resolution of the Board approved on 25 March 2025. INFORMATION & MONITORING Management reports are deliberated monthly at Group Management Committee (GMC) level to review the financial, non-financial, and operational performance of the Group’s various businesses, as well as review papers for submission to the Board. The financial and operational performance is reviewed quarterly by the Board to monitor FGV’s business progress against the established strategies, budgets and targets set annually. Through these platforms, actions and initiatives are implemented to close any gaps in the achievement of strategies and budgets. AUTHORITY & RESPONSIBILITY FGV has established clear lines of responsibility and delegation of authority to facilitate rapid responses to changing business dynamics, ensuring effective supervision and coordination of daily operations. This includes a defined organisational structure and Group Limit of Authority (GLOA), approved by the Board, outlining limits and approval authorities for both Board and Management across key processes. Empowering various levels of management, the GLOA facilitates informed decision-making and business transaction execution within predetermined risk tolerances set by the Board to foster operational efficiency. COMPETENCY The essence of the Group’s corporate culture is firmly rooted in its core values of Partnership, Respect, Integrity, Dynamism, and Enthusiasm (PRIDE). These values play a pivotal role in shaping an ethical and high-performance culture, aligning with the Group’s overarching vision and supporting its business objectives and goals. Ensuring that every employee is well-versed in these values is instrumental in instilling the appropriate conduct and cultural ethos throughout the organisation. The PRIDE elements are integrated into the annual performance assessment of employees, signifying the Group’s commitment to its core values. The Group prioritises the identification and cultivation of high-potential candidates as a fundamental component of succession planning, aligning with the overarching goal of supporting the Group’s growth strategies. Recognising the imperative nature of this exercise, the organisation is committed to constructing a robust succession pipeline and fostering a healthy talent bench strength. This commitment is manifested through investments in competency development programmes that are specifically designed to cultivate the requisite skills essential for effective business operations. This strategic approach underscores FGV’s dedication to nurturing talent and ensuring a resilient foundation for sustained growth. 231 Sec 07 SUSTAINING VALUE THROUGH GOOD GOVERNANCE
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