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The top five (5) risk factors of the Group after considering its likelihood and impact from both financial and
non-financial standpoints are as follows:
Broad risk area
Sub-broad risk
Key mitigation measures
1. Business and operational
sustainability
Local and global competition,
economic slowdown factors
and
invasion/demonstration
by the local community due
to conflict or cultural belief
adversely impact the business
operations.
Losing market share,
business interruption,
products pricing and
marketing.
• Monitoring of market/economic conditions.
• Strategic business plan based on market
conditions.
• Key marketing strategy for each division.
• Consistently participate in the local meetings
conducted by the community or authority
to ensure the company or community
(vice-versa) is well updated and informed
about any changes or new information or
development.
2. Environment
Local and global weather
patterns, natural disasters,
diseases or crop pests and
stringent environmental and
conservation regulations.
Affect the production
due to a lower
supply of materials,
production efficiency
and product quality.
• Constructed a flood mitigation system at the
flood prone areas.
• Establishing a safe wildlife corridor for
animals to ensure they do not wander off
into communal/estate areas.
• Continuous manuring and pest and disease
preventive and corrective programmes.
MONITORING & REVIEW
CONSULTATION & COMMUNICATION
RISK ASSESSMENT
Identify existing controls & actions to mitigate risks
Determine inherent & residual risk ratings
Determine date to implement risk mitigation actions
Define
processes,
activities &
objectives
Identify
risk
Analyse
risk
Evaluate
risk
Treat
risk
Risks
Profile &
Parameter
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.
Fima CORPORATION Berhad
(21185-P)
Annual Report 2019
80