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Broad risk area
Sub-broad risk
Key mitigation measures
3. Compliance
Internal and external regulatory
requirements.
Regulatory.
• Constant monitoring for each department,
division and Group.
• Regular review in operational audit
programme.
• Continuous updating of new regulatory
requirement.
4. Political
Investment’s 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
• Proactively engage with Government bodies
and authorities to strengthen the work
relationship and to be well informed and
updated, on any changes in regulations and
policies of the country.
5. Pricing
Raw materials cost inflation.
Price escalation of
raw materials such as
fertiliser, chemicals
and fuel due to yearly
inflation.
• Introduced Palm Oil Mill Effluent (“POME”)
application and composting application as
part of the fertiliser programme in order to
reduce the manuring costs.
• Continuously monitoring the cost of raw
materials for competitive price.
The Group’s risk management context and accountability framework are expressed as follows:
Strategic Risks
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 abroadwhich affected
the Group policies and
procedures.
Pricing, sourcing of raw
material, dependence on
single customers and stiff
competition are the risks
facing by 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 Managing
Director.
Heads of Divisions,
Departments and
Business Units.
Managing Director, Chief
Operating Officer and
Financial
Controller
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.
corporate
governance
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