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Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
91
The RSC, as a sub-committee to the ARC, is entrusted with the responsibility of implementing and maintaining the ERM framework to
achieve the following objectives:
(a) Communicate the vision, role, direction and priorities to all employees and key stakeholders.
(b) Identify, assess, treat, report and monitor significant risks in an effective manner.
(c) Enable systematic risk review and reporting on key risks, existing control measures and any proposed action plans.
(d) Heightening risk awareness culture in the business processes through risk owners’ accountability and sign-off for action plans and
continuous monitoring.
(e) Compilation of the business units’ risk profiles in relation to the Group risk parameters, the top risks from each business segment.
Below are the steps of compilation of risk information conducted within the Group:
Prepare
RMU prepares
the Risk Register
indicating the
current condition of
each risk and plan
Compile
Risk Management
Coordinator
compiles all Risk
Registers
Review
RSC review Risk
Registers together
with RMU annually
Update
Risk Register is
updated based
on the latest risk
information
Monitor
RMU is to monitor
and report risk
information
1
2
3
4
5
The Board 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 tomanage these risks.
Organisation
Hierarchy
BOARD
(Executive
Management)
Vision
division & SBU
(Senior Management
& Mid-Management)
Strategic
Objectives & Goals
External
Risks
internal
Risks
operations/functions
(Executive & Staff)
operational
Goals & Targets
Business
objectives
Hierarchy
FRame of
reference
Aligned
The Board reviews the effectiveness of the risk management and internal control system through the following monitoring and assessment
mechanisms:
•
Quarterly reviews on the Group’s actual financial and operational performance versus planned performance and other key financial
and operational performance indicators.
•
Reviews of specific transactions, projects or opportunities are also discussed between the management and the Board as and when
required. This allows the Board and management to manage potential risks.
•
The ARC deliberates and discusses reports issued by the GIA and external auditors pertaining to financial, operational, governance,
risk management and control matters. The status of preventive and corrective actions for issues discussed are also updated to the
ARC to enable monitoring of the actions.