MSM Malaysia Holdings Berhad Annual Report 2021

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 Management take specific measures to mitigate the risks. CGRM purview include 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 Overseeing MSM Group’s Business Continuity Management Risk Management Framework and Process In ensuring effective oversight of risks enterprise-wide level, we have embedded risk management in all our key processes and activities. These are guided by our Enterprise Risk Management and Framework, which was designed in accordance with ISO 31000:2018 Risk Management - Guidelines. An overview of the Group’s Risk Management Framework is depicted below: BOARD AND BOARD COMMITTEES Key Senior Management MANAGE First line of defence - Functions that own and manage Risks. OVERSEE Second line of defence - Functions that oversee risks, control and compliance. ASSURANCE Third line of defence - Internal functions that provide independent assurance. Forth line of defence - Set requirements and/ or perform independent assurance. • Subsidiaries • Policies and Standard Operating Procedures • Compliance, Compliance & Risk Management • Group Governance • Group Risk • Group Internal Audit • External Auditors • Regulators • Other External Bodies STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 252