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Kumpulan Fima Berhad
(11817-V)
100
The top six (6) risk factors of the Group after considering its likelihood and its impact from both a financial and/or non-financial
standpoint are as follows:
Broad risk area
Sub-broad risk
Key mitigation measures
Operational
Global, regional and/or local economic
slowdown factors adversely impact
commodity prices, customers demand
and costs.
Business interruption, pricing and
marketing.
• Monitoring
of
market/economic
conditions.
• Strategic business plan based on
market conditions.
• Key marketing strategy for each
division.
Environment
Erratic
weather
conditions
and
deterioration of land structure
Business interruption due to collapse
of business premise and damages to
assets.
• Continuous preventive and corrective
maintenance
programmes
and
exploring new methods to mitigate
drought conditions.
Financial
Volatile exchange rates for import and
export.
Foreign exchange
• Foreign currency bank accounts.
• Foreign exchange hedging
Compliance
Internal and external regulatory
requirements.
Regulatory
• Constant monitoring for each
department, division and Group.
• Regular review in operational audit
programme.
• Continuous
updating
of
new
regulatory requirement.
Safety, Health and Environment
Major accident occurs to employees/
contractors arising fromnon-compliance
with policies and procedures leading to
death or severe injury.
Compliance of safety, health and
environment (“SHE”)
• The Safety, Health & Environment
(and Emergency Response Policies
& Procedure) was established and
implemented at divisional level.
• Performance monitoring & reporting
implemented.
• Regular safety training dialogues
and dedicated SHE Committee/
Department.
Political
Investment’s returns could suffer as a
result of political changes or instability
in a country
Large and unpredictable changes in
government policy and regulations
effecting the business.
• Frequent meetings with related
Government bodies and authorities
to strengthen the work relationship
and to be well informed and updated,
on any new changes in regulations
and policies of the country.
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL