STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL Pandemic and movement control orders (MCO) by Government Social The outbreak now constitutes a global health emergency that can affect the productivity of an organisation and even a country’s economy Wide and fast spread of virus infection from one source country to another, force governments (local and/or abroad) to take extreme preventive and mitigating measures on a wide scale over a period, including travel bans i. All staff/contractors have to abide to the Standard Operating Procedures initiated by the government while working ii. Urging all staff/contractor to be fully vaccinated and take up the booster dose iii. Implementing control measures at plant to curb COVID-19 spread by performing weekly RTK swab test Health and safety of our workers Social Industrial accidents and health pandemics can lead to lowering of reputation, loss of reliability and contamination of products. Quality is of paramount importance i. Ensure all employees are aware of matters pertaining to hygiene, health epidemics and cleanliness ii. Fully comply with Industrial Safety and environment regulations Catastrophic Risk Failure of critical equipment/ machinery (Failure/tripping of steam boiler during normal operation, Raw Sugar Weigher Malfunction, Failure of turbine generators, Failure of critical equipment/ machineries) Operation • Aging machinery, computer software and hardware malfunctions, interruption of utility supplies, production disruption and loss • Malfunction of the weigher will result in error of weighing and wrong recording • Turbine generators tripping will affect the plant production • Any breakdown or downtime will cause plant to shut down or melting stop • All these lead to higher operating cost, lower efficiency and loss of customer confidence i. Comprehensive plant and machine upgrading and replacement programme ii. Planned and scheduled maintenance and service iii. Ensure skilled and trained operators and technicians for maintenance work iv. Establish and update standard operating procedures and hazard Identification, Risk Assessment and Determining Control for all activities v. Establish a consistent schedule of maintenance and servicing of our refining machinery, and where identified have replaced aging machinery with machine upgrades and replacements vi. Ensure maintenance plans are carried out consistently Operational Risk Risk Category Category Description Mitigation WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 258
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