MSM Malaysia Holdings Berhad Annual Report 2019

BUSINESS CONTINUITY MANAGEMENT 1. A holistic Business Continuity Management (BCM) framework ensures that a company is able to recover its business operation and activities following a crisis or disaster so that it is able to remain resilient in safeguarding the interest of their interested parties. The objectives of the Business Continuity Management program are as follows: • To sustain organisational survival during a crisis by protecting human life and facilitating the resumption of critical business processes in a timely manner; • To minimise losses during disaster or business disruption; • To ensure that the provisioning of key products continues to be maintained at an acceptable level; and • To safeguard the reputation and image of the Group. 2. The BCM program were reviewed based on the effectiveness of the Business Continuity Plan (BCP) designed to cater to MSM Group. The BCP is continuously monitored, tested and communicated to all levels to ensure that the Group is prepared in the event of crisis. in the event of crisis. Embedding BCM in the organisation’s culture BCM Policy & Program Exercising, Maintaining and Reviewing Developing & Implementing BCM Response Understanding the Organisation Determining BCM Strategy • Exercise Programme • Conduct Exercises • Maintenance, Review, Audits • Business Impact Analysis • Estimating Continuity Requirements • Risk Assessment • Incident Management Plan • Developing Business Continuity Plan • Determining Business Continuity Strategy • Resource Level Consolidation • IT Disaster Recovery Plan 3. During the year under review, MSM Group continued to review the Business Recovery Strategy of relevant departments or divisions to ensure validity of the current Business Continuity Plan (BCP). The outcome and findings from the testing activities were then gathered to identify areas for continual improvement. 4. Several BCM Simulation Testing conducted in 2019 with MSM subsidiaries. Company Date Scenarios MSM Prai Berhad (Sg Buloh Warehouse) 21 March 2019 “Desktop”simulations MSM Prai Berhad 29 August 2019 Fire at the Main Office Building MSM Perlis Sdn Bhd 24 October 2019 Damaged of Main Supply Cable to Sugar Packaging House MSM Refinery Sugar (Johor) Sdn Bhd 28 November 2019 Fire at the MC Shop/ Warehouse MSM Group shall continue to ensure its BCM program is effectively embedded and implemented in all business functions focusing on high probability scenarios which include a BCP walkthrough testing on ICT related systems to ensure resumption of business operation in case of system disruption. MSM Malaysia Holdings Berhad | Annual Report 2019 104