Page 260 - MSM_AIR2021

258 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

Risk Category Category Description Mitigation

Catastrophic Risk

Pandemic and Social The outbreak now constitutes i. All staff/contractors have to abide to the
movement control a global health emergency Standard Operating Procedures initiated
orders (MCO) by that can affect the productivity by the government while working
Government of an organisation and even a ii. Urging all staff/contractor to be fully
country’s economy vaccinated and take up the booster dose

Wide and fast spread of virus iii. Implementing control measures at plant
infection from one source to curb COVID-19 spread by performing
country to another, force weekly RTK swab test
governments
(local and/or abroad) to take
extreme preventive and
mitigating measures on a wide
scale over a period, including
travel bans
Health and safety of Social Industrial accidents and health i. Ensure all employees are aware of
our workers pandemics can lead to lowering matters pertaining to hygiene, health
of reputation, loss of reliability epidemics and cleanliness
and contamination of products. ii. Fully comply with Industrial Safety and
Quality is of paramount environment regulations
importance

Operational Risk
Failure of critical Operation • Aging machinery, computer i. Comprehensive plant and machine
equipment/ software and hardware upgrading and replacement programme
machinery malfunctions, interruption of ii. Planned and scheduled maintenance and
utility supplies, production service
(Failure/tripping of disruption and loss
steam boiler during • Malfunction of the weigher iii. Ensure skilled and trained operators and
normal operation, will result in error of weighing technicians for maintenance work
Raw Sugar Weigher and wrong recording iv. Establish and update standard operating
Malfunction, procedures and hazard Identification,
Failure of turbine • Turbine generators tripping Risk Assessment and Determining
generators, will affect the plant production Control for all activities
Failure of critical • Any breakdown or downtime v. Establish a consistent schedule of

equipment/ will cause plant to shut down maintenance and servicing of our
machineries) or melting stop refining machinery, and where identified
• All these lead to higher have replaced aging machinery with
operating cost, lower machine upgrades and replacements
efficiency and loss of
customer confidence vi. Ensure maintenance plans are carried
out consistently