Chemical Company of Malaysia Berhad Annual Report 2018

The Board is pleased to issue the following report on the Risk Management Committee and its activities during the financial year ended 31 December 2018. Composition of Risk Management Committee and Meetings The Risk Management Committee comprises of four (4) members, all of whom are Non-Executive Directors. During the financial year, there were changes to the composition of the Risk Management Committee. Following the resignation of Dato’ Hajah Normala binti Abdul Samad who resigned from the Board and the Risk Management Committee of the Company on 5 July 2018, Dato’ Wan Mohd Fadzmi bin Che Wan Othman Fadzilah, an Independent Non-Executive Director was appointed as a member of the Risk Management Committee on 28 August 2018 to replace Dato’ Hajah Normala binti Abdul Samad. Subsequently, Puan Amizar binti Mizuar was also appointed as additional member of the Risk Management Committee on 13 November 2018. A total of four (4) meetings were held during the financial year. The status of directorships and attendance record of each of the members during the financial year were as follows: Name of Directors and Status No. of Meetings Held Dato’ Azmi bin Mohd Ali 4/4 Chairman, Non-Independent Non-Executive Director Dato’ Seri Ir. Dr. Zaini bin Ujang 3/4 Member, Independent Non-Executive Director Dato’ Wan Mohd Fadzmi bin Che Wan Othman Fadzilah 1/1 Member, Independent Non-Executive Director (Appointed w.e.f. 28 August 2018) Amizar binti Mizuar Not Applicable Member, Non-Independent Non-Executive Director (Appointed w.e.f. 13 November 2018) Dato’ Hajah Normala binti Abdul Samad Not Applicable Member, Non-Independent Non-Executive Chairman (Resigned w.e.f. 5 July 2018) ACTIVITIES DURING THE YEAR Risk Reporting Quarterly reports to RMC highlighting the Group’s Risk Profile to enable Board and Management to focus on, appraise and consider key risks affecting the Group’s businesses and operations and the system of internal control necessary to manage and mitigate such risks. The RMC reviewed the top risks for the Group and its business divisions. The reports highlight the movements of risk ratings as well as the progress of treatment plans that were identified to mitigate the risks. The top risks for 2018 are in the following areas: (i) Operational Risk The management of the operational risk (such as those relating to health and safety, production, distribution, compliance) is closely monitored by respective Risk Owners, with risk mitigation plans proposed and implemented. Risk awareness workshops are conducted to create a risk-awareness culture, which will ensure greater understanding of the importance of risk management and ensure that its principles are embedded in key operational processes. The workshops provide reasonable assurance that significant risks are identified and addressed. In total two (2) risk workshops were conducted which covers the Corporate Office and the Chemicals business. Report of the Risk Management Committee 80 ANNUAL REPORT 2018