Page 115 - MSM_AR2020

SUSTAINABILITY EFFECTIVE CORPORATE FINANCIAL ADDITIONAL DETAILS OF THE ANNUAL
REPORT LEADERSHIP GOVERNANCE STATEMENTS INFORMATION GENERAL MEETING

STATEMENT ON RISk MANAGEMENT

AND INTERNAL CONTROL

This statement is made pursuant to:

Rule 15.26(b) of Bursa Malaysia Securities Berhad Main Market Listing Requirements,
Malaysian Code on Corporate Governance 2017 and in accordance with the Statement on
Risk Management and Internal Control: Guidelines for Directors of Listed Issuers.

RESPONSIBILITY AND ACCOUNTABILITY The Management’s key role is to identify significant risks,
evaluate the risk profile and drive risk mitigation strategies 113
The Board is committed to implementing and maintaining a on a regular basis. The management team is also responsible
robust risk management and internal control environment for risk management within their functional areas and
and is responsible for the system of risk management to ensure that risk management is embedded in their
and internal control. The Board acknowledges that the risk day-to-day business processes.
management and internal control systems are designed
to manage and minimise risks as it may not be possible to The Group’s Risk Management function; undertaken by
totally eliminate the occurrence of unforeseeable Corporate Governance & Risk Management (CGRM) adopts
circumstances or losses. an effective and progressive Enterprise Risk Management
System (ERMS) to identify, evaluate and monitor the
Audit, Governance and Risk Committee risks faced by the Group, and to take specific measures to
mitigate these risks including the following responsibilities: MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
Audit, Governance and Risk Committee at Board level that
supports the Board in its risk management and internal • Reviewing, assessing, enhancing and monitoring the
control responsibilities. AGRC is tasked with: Group’s Risk Management Framework including risk
management policies and procedures; and in alignment
i. Overseeing risk management and governance aspects
of the Group; and with FGV Group Risk Management framework;
• Providing guidance to all MSM Group’s operations in
ii. Assessing the risks and control environment and
overseeing financial reporting, including the external identifying and assessing risks, developing relevant and
and internal audit. effective mitigation strategies to manage risks;
• Maintaining the Risk Register for the MSM Group;
RISK MANAGEMENT
• Preparing risk reports to the Audit, Governance and
Risk Management is regarded by the Board to be an Risk Committee (“AGRC”) and Board; and
integral part of the Group’s organisational processes, with
the objective of maintaining sound system and ensuring • Overseeing MSM Group’s Business Continuity
its continuing adequacy and integrity. Risk Management is Management.
firmly embedded in the Group’s Risk Management Framework.