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Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
93
Key risk category
Our approach
Political changes and instability:
Investment returns could suffer as a result of
political changes or instability in a country.
• Engage government and regulators on policy matters at local, provincial and
federal levels and provide support of national agendas.
Financial:
Escalating operational costs and fluctuation in
prices.
• Introduced Palm Oil Mill Effluent 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.
• Constantly monitor the price trend and continuously improved the
downstream operations and productivities to achieve higher yield outputs.
Corporate liability:
Bribery and corruption risks.
• Adoption of Anti-Bribery Policy.
• Whistle-Blowing Policy in place for non-compliance reporting.
• Creating awareness through training, both via e-learning and classroom
training.
The Group will continuously strengthen its processes to ensure it has Adequate
Procedures in place in accordance with the Malaysian Anti-Corruption
Commission Act 2009.
Information Technology (IT):
System and data security risks (cyber security risk).
• Internal procedures in place to guide users in maintaining adequate business
information (data) and provide guidelines on protection against unauthorised
access, use and dissemination of business information.
• Anti-virus software to protect data against malware and spyware attacks.
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 abroad
which affected the Group policies and
procedures.
Pricing, sourcing of rawmaterial,
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 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 tomanage the various challenges arising from the dynamic business and competitive environment.