MSM Malaysia Holdings Berhad Annual Report 2020

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL RISK MANAGEMENT ACTIVITIES Continuous integration between strategies and risk management was carried out to ensure risk management approach is embedded into business decision. Listed below are the key risk management activities undertaken by CGRM to reinforce the risk management culture within the Group: Activities Description Quarterly Risk Reporting for MSM Group CGRM published its Quarterly Risk Report as a reporting tool to inform the Management, Board Committees and Board of the key risks horizon associated with the Group’s business and operations covering the top 10 and other key risks. Review of Risk Registers Existing risk registers were reviewed jointly with the respective risk owners at Operation Site via MsTeam approach, to ensure the analysis and corresponding mitigation measures and action plans were effective and adequately documented. Call Tree Structure The MSM Group call tree structure was reviewed and enhanced as part of the Business Continuity Plan (BCP). The structure review is to ensure the effectiveness of the BCP designed for MSM Group. COVID-19 Pandemic In 2020, a significant Pandemic that threat to public health emerged. Giving an alarm on the risk: COVID-19 pandemic. MSM Group has been taken an action to manage the COVID-19. Action taken as follow: ActionTaken Description COVID-19 Committee In view of the rapidly evolving situation surrounding the COVID-19 pandemic, the Board and the Group’s Management are closely monitoring and pro-actively managing this situation and its corresponding impact to business and operations. The Top Management has set up the COVID-19 Committee via WhatsApp Group and has been chaired by GCEO. The Committee has been updated on the information from each respective Subsidiary on the Positive case that may affected the Employees on daily basis. This will give the Top Management enough time to take an action. The guidance and directive through the Committee facilitate MSM in handling the COVID-19 situation. COVID-19 Response Plan Most businesses are likely to experience significant disruption to their business-as-usual operations and will face business underperformance throughout the duration of the COVID-19 crisis. To help address these challenges, MSM Group came up with a COVID-19 Response Plan. The COVID-19 Response Plan provide guidance when dealing with COVID-19. The steps taken is to help prevent employees’ risk of exposure to COVID-19. COVID-19 Risk Assessment In quarter 2 2020, the COVID-19 Pandemic has been addressed in the risk assessment by the representative. The risk that has been updated by the representative also taking into consideration on the monitoring of the employee that been infected with COVID-19. COVID-19 Report COVID-19 Report has been reported to the Top Management weekly and also reported to the Board quarterly. In addition, the MSM Group takes initiative to report to FGV Group Risk. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 116 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT