Chemical Company of Malaysia Berhad Annual Report 2019

6. Emerging Risk Monitoring The annual Global Risk Report provides insights into the emerging risks for continuous assessment and monitoring. This assessment highlights the emerging risks that may have impact on the Group’s businesses and operations to enable Management to proactively develop internal controls necessary to manage these risks. The emerging risk that have been identified to have potential impact on the Group are ‘Extreme Weather’, ‘Water Crisis’ and ‘Cyber Attack’. Controls have been developed to mitigate these risks. 7. Review on Specific Matter The Management presented to the RMC an overview of the safety and environmental risks affecting the Pasir Gudang operations and the controls that are in place tomitigate the identified risks. The presentation also includes measures taken to address the issues arising from the Sungai Kim Kim incident. RISK MANAGEMENT FUNCTION The Group’s Risk Management Committee (“RMC”) is supported by an in-house risk management function, which resides in the Group Risk, Integrity and Assurance Department. The Group Risk Management (GRM) Unit provides risk advisory and supports various Boards, Executive and Division Risk Committees in the Group in all matters of Enterprise Risk Management (ERM). The ERM framework defines the policy and objectives and sets the risk reporting structure. The framework structure includes risk profiling of current and historical risk information to anticipate probable future exposures. The framework ties into the Group’s governance policies and guidelines via deliberations at various risk committees. The framework operates within the context of Strategic, Operational, Emerging and Project risks categories. The awareness on the importance of building a risk culture within the Group is conveyed via workshops and training. Further, guidance is provided to the risk owners when quarterly reviews of the risk register are conducted. ERM Framework ERM Process Cycle System & Tools (RiSmart) Communication, Education, Training & Guidance Risk Analysis Controls Planning & Change Action Line Management & Reporting Risk Appetite ER Pr ss l Roles & Delegated Authorities Policies Risk Profile Quantification & Analysis PRESENT Incidents & Loss Events Learn From Past Predictor Events FUTURE Committees Management Information Governance Strategic Operational Emerging Projects | Report of The Risk Management Committee | 98 CHEMICAL COMPANY OF MALAYSIA BERHAD