Chemical Company of Malaysia Berhad Annual Report 2019

The Group adopts ISO31000 guidelines in its risk management processes, whereby the Group has established its external and internal perspectives for its risk management activities, and conducted risk identification, analysis, evaluation and treatment, with continuous monitoring, review, communication and consultation. Risks events are analysed in terms of its likelihood of occurrence and significance of their consequences, where an approved Risk Matrix is used to ensure consistent practice throughout the Group. Risk Matrix High High High Extreme Extreme Extreme Moderate High High High Extreme Extreme Minor Moderate High High High Extreme Trivial Moderate Moderate High High High Trivial Minor Moderate High High High LIKELIHOOD consequences Risk Management Committee Group Risk Department Executive Risk Management Committee Divisional Risk Management Enterprise Risk Management Reporting Structure The RMC receives reports from the Executive Risk Management Committee (ERMC) which is chaired by the Group Managing Director and comprises Senior Management of the Group. The ERMC is assisted by the Divisional Risk Committees whose role is to identify, mitigate and manage risks within their businesses. The ERMC retains the overall risk governance responsibility and risk oversight of the Group and its subsidiaries. The ERM structure is summarised below: BUSINESS OVERVIEW FINANCIAL STATEMENTS OTHER INFORMATION GOVERNANCE 99 ANNUAL REPORT 2019