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F i m a C o r p o r at i o n B e r h a d ( 2 1 1 8 5 - P ) •
A n n u a l R e p o r t 2 0 1 8
ORGANIZATION
HIERARCHY
BOARD
(Executive
Management)
VISION
EXTERNAL
RISKS
INTERNAL
RISKS
Divisions & SBU
(Senior Management &
Mid-Management)
Strategic
Objectives & Goals
Operational
Goals & Targets
Operation/Functions
(Executives & Staff)
BUSINESS
OBJECTIVES
HIERARCHY
FRAME OF
REFERENCE
ALIGNED
Board of Directors retains the overall risk management responsibility in accordance with Best Practice of the Malaysian
Institute of Corporate Governance, which requires the Board to identify principal risks and ensure the implementation of
appropriate systems to manage these risks.
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
The ERM framework adopted by the Group encompasses the risk assessment process, organisational oversight and
reporting function to instil the appropriate discipline and control by continuously improving risk management capabilities. Risk
assessment, monitoring and review of the various risks faced by the Group are a continuous process within the key operating
units with the RMC playing a pivotal oversight function.
The ERM assessment was conducted through a combination of workshops and interviews involving the senior management
and the key enterprise risks faced around the Group’s business units are then reported to the Audit Committee on annual
basis. The workshops and interviews conducted have generated the following reports:
• Detailed Risk Register.
• Risk Parameters.
• ERM Report.
These reports were summarised as risk profile and provide the basis for the following:
• Business action plans and improvement strategies.
• Developing cost effective control strategies.
• Prioritisation of areas for operational audit.
All subsidiaries within the Group will update and present their risk profiles to the RMC on an annual basis for the RMC’s review
and approval.