ENRA Group Berhad | Annual Report 2022 65 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL RISK MANAGEMENT (Cont’d) Management of Significant Risks The management of significant risks identified for the financial year ended 31 March 2022 are as follows: 1. Strategic Management Risk in managing the expansion of business portfolio. Expanding the business database through diversification, expansion, education & transfer of knowledge in this ever challenging & changing environment. The Group managed this risk through managing customer and main contractor expectations for EES & ESPM for the PCML project. 2. Environmental Risk exist as we operate within both the oil & gas and property development industries/segments which are exposed to compliance risk of laws and regulations including those relating to health, safety, environment and compliance with the various certifications required for those industries. We currently have various preventive maintenance programs through Quality, Health, Safety and Environment (“QHSE”) daily & weekly monitoring for ESPM, periodic reviews of compliance with the applicable rules, regulations and standards with the regulators for the other projects, training and development, and processes for risk assessment and monitoring and control based on ISO 9001 quality objectives. 3. Project Completion Risk, as the Group has businesses both locally and overseas and is exposed to various risks relating to delay and price changing in procuring materials, project management risks, occupational health and safety risk, political risk, credit risk, foreign exchange risk, sub-contractor’s financial management, payment issuance and communication barriers. The Group has embarked on a more stringent role in terms of monitoring projects both locally and overseas such as appointing key people as project managers and regular monitoring, liaising with Group Legal on the terms of contracts and reporting on project progress to the EXCO. 4. The Board and Management of ENRA monitor the impact to the Group’s business and operations arising from the COVID-19 pandemic as per the EXCO-approved Business Continuity Plan (“BCP”) which was implemented on 27 February 2020. In respect to this, the Group engages with customers, suppliers, transporters and forwarders to minimise movement and supply disruptions. The Group ensures that its business and operation will continue amidst the COVID-19 pandemic but undertakes to adhere to various standard operating procedures as set by the government as well as the BCP. To this end, various safety and health measures were implemented at the Group’s premises such as implementation of a “work from home” policy, split team arrangements, sanitisation and daily temperature screening. The Group will continue to monitor the ripple effects of the pandemic and to assure the safety of its employee and those in its supply chain. RISK MANAGEMENT BASED ON ISO 31000 PRINCIPLES A. Creates and protects value B. Integral part of organisational processes C. Part of decision making D. Explicity addresses uncertainty E. Systematic, structured and timely F. Based on the best available information G. Tailored H. Take human and cultural factors into account I. Transparent and inclusive J. Dynamic, interactive and responsive to change K. Facilitates continual improvement and enhancement of the organisation FRAMEWORK PROCESS Mandate and commitment Risk assessment Communication and consultation Monitoring and review Establishing the context Risk identification Risk analysis Risk evaluation Risk treatment Design of framework for managing risk Monitoring and review of the framework Continual improvement of the framework Implementing risk management
RkJQdWJsaXNoZXIy NDgzMzc=