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Fima Corporation Berhad
(21185-P)
sustainability & governance
70
Broad risk area
Sub-broad risk
Key mitigation measures
Compliance
Internal and external regulatory requirements.
Regulatory
• Constant monitoring for each department,
division and Group.
• Regular review in operational audit programme.
• Continuous updating to new regulatory
requirement.
Political
Investment returns could suffer as a result of
political changes or instability in a country
Major and unpredictable
changes in government
policies and regulations
affecting the business.
• Frequent meetings with related Government
bodies and authorities to strengthen the work
relationship and to be well informed and updated,
on any new changes in regulations and policies
of the country.
Safety, Health and Environment
Major accident occurs to employees/
contractors arising from non-compliance with
policies and procedures leading to death or
severe injury.
Compliance of safety,
health and environment
(“SHE”)
• The Safety, Health & Environment (and
Emergency Response Policies & Procedure was
established and implemented at divisional level.
• Performance
monitoring
&
reporting
implemented.
• Regular safety training dialogues and dedicated
SHE Committee/Department.
The Group’s risk management context and accountability framework are expressed as follows:
Strategic risk
Operational risks
Financial risks
Framework
Strategic risks are primarily
risks caused by events that
are external to the Group, but
have a significant impact on its
strategic decisions or activities
Operational risks are inherent in
the continuing activities within
the different business units or
subsidiaries of the Group.
Financial risk is an umbrella term
for multiple types of risk associated
with financing, including financial
transactions that include the
uncertainty of a return and the
potential for financial loss.
Exposure
Compliance
of
regulatory
requirements from local and
abroad which affected the
Group policies and procedures.
Pricing, sourcing of raw material,
dependence on single customers
and stiff competition are the risks
facing the Group.
The Group is exposed to various
financial risks relating to bad
debts, liquidity, interest rates,
foreign exchange and commodity
prices.
Accountabilities
Board and MD.
Heads of Divisions, Department
and Business Units.
MD, Chief Operating Officer
and cascading to all Heads of
Business Units.
Amidst delivering growth for its stakeholders, the Group will continue its focus on sound risk assessment practices and internal control
to ensure that the Group is well equipped to manage the various challenges arising from the dynamic business and competitive
environment.
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL