Page 117 - MSM_AR2020

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

Enterprise Risk Management (ERM) System

The Enterprise Risk Management framework enables the subsidiaries, operating units and support functions to exercise a
consistent approach for risk identification and institutes a common platform to deliberate and manage risks.
The Group has in place a continuous and systematic control structure and process for identifying, evaluating and managing
significant risks pertinent to the achievement of the Group’s overall corporate objectives. The control structure and process
which has been established throughout the Group is updated and reviewed from time to time to suit the changes in the
business environment.
Below are the steps of compilation of risk information conducted within the Group:

1 2 3 4 5 6 115

Review & Review, verify, Review & Review & Review & Report to
Update confirm and Approve Determine Approve Board
revise

Risk Owner Risk GCEO/GCOO/ Sector Risk Sector Head Board
(RO) Champion HOO/HOD Champion (SH) Reporting on
(RC) (SRC) quarterly basis.
Review, update Review and Review and
the Risk Review, verify, approve/reject Review and approve the top
Register (RR) confirm and the RR & the determine the 10 risk for the
quarterly in revise the Risk top 10 risk for top 10 risk for sector. MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
line with the Register (RR) each subsidiary. the sector.
company’s that has been
strategies and updated by
objectives. Risk Owners
(RO).

RC selects the
Top 10 Risks for
the companies
every quarter
(Select from
established
Risk Registers).

Principally, in the ERM System, the Group’s key risk factors are categorised as follows:
Main Category Secondary Risks Main Category Secondary Risks
Geopolitical Socio-Politics Strategic Risks General Strategy
Risks Legal Supply Chain Structure and Cooperation
Infrastructure Large Scale Strategic Project
Catastrophic Environmental Extremes Reputational
Risks Man-made Disasters Financial Risks Profitability
Violent Acts Funding
Market Risks Macro-Economic Development Liquidity
Sales-Market Development Operational Technology, Process and Organisation
Procurement-Market Development Risks Organisation Capability and Human
Resource
Compliance