MSM Malaysia Holdings Berhad Annual Report 2020

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL RESPONSIBILITY AND ACCOUNTABILITY The Board is committed to implementing and maintaining a robust risk management and internal control environment and is responsible for the system of risk management and internal control. The Board acknowledges that the risk management and internal control systems are designed to manage and minimise risks as it may not be possible to totally eliminate the occurrence of unforeseeable circumstances or losses. Audit, Governance and Risk Committee Audit, Governance and Risk Committee at Board level that supports the Board in its risk management and internal control responsibilities. AGRC is tasked with: i. Overseeing risk management and governance aspects of the Group; and ii. Assessing the risks and control environment and overseeing financial reporting, including the external and internal audit. RISK MANAGEMENT Risk Management is regarded by the Board to be an integral part of the Group’s organisational processes, with the objective of maintaining sound system and ensuring its continuing adequacy and integrity. Risk Management is firmly embedded in the Group’s Risk Management Framework. The Management’s key role is to identify significant risks, evaluate the risk profile and drive risk mitigation strategies on a regular basis. The management team is also responsible for risk management within their functional areas and to ensure that risk management is embedded in their day-to-day business processes. The Group’s Risk Management function; undertaken by Corporate Governance & Risk Management (CGRM) adopts an effective and progressive Enterprise Risk Management System (ERMS) to identify, evaluate and monitor the risks faced by the Group, and to take specific measures to mitigate these risks including the following responsibilities: • Reviewing, assessing, enhancing and monitoring the Group’s Risk Management Framework including risk management policies and procedures; and in alignment with FGV Group Risk Management framework; • Providing guidance to all MSM Group’s operations in identifying and assessing risks, developing relevant and effective mitigation strategies to manage risks; • Maintaining the Risk Register for the MSM Group; • Preparing risk reports to the Audit, Governance and Risk Committee (“AGRC”) and Board; and • Overseeing MSM Group’s Business Continuity Management. This statement is made pursuant to: Rule 15.26(b) of Bursa Malaysia Securities Berhad Main Market Listing Requirements, Malaysian Code on Corporate Governance 2017 and in accordance with the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 113 SUSTAINABILITY REPORT EFFECTIVE LEADERSHIP CORPORATE GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING