Page 254 - MSM_AIR2021

252 MSM MALAYSIA HOLDINGS BERHAD WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOW WE OPERATE
ANNUAL INTEGRATED REPORT 2021

STATEMENT ON

RISK MANAGEMENT AND

INTERNAL CONTROL

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, Providing guidance Maintaining the Preparing risk Overseeing MSM
enhancing and to all MSM Group’s Risk Register for reports to the Audit, Group’s Business
monitoring the Group’s operations in the MSM Group Governance and Risk Continuity
Risk Management identifying and Committee (AGRC) Management
Framework including assessing risks, and Board
risk management developing relevant
policies and procedures; and effective mitigation
and in alignment strategies to manage
with FGV Group risks
Risk Management
framework

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

OVERSEE • Compliance,
MANAGE Compliance & Risk
First line of defence - • Subsidiaries Second line of defence - Management
Functions that own and • Policies and Standard Functions that oversee • Group Governance
manage Risks. Operating Procedures risks, control and
compliance. • Group Risk

ASSURANCE
Forth line of defence - • External Auditors
Third line of defence - Set requirements and/ • Regulators
Internal functions that • Group Internal Audit or perform independent
provide independent assurance. • Other External
Bodies
assurance.