Chemical Company of Malaysia Berhad Annual Report 2019

Policies & Procedures There are clearly defined policies and procedures in place to ensure adequacy of controls, and compliance with relevant law and regulations. These policies and procedures are periodically reviewed and updated to reflect changes in business structure and processes. Certain companies within the Group have ISO 9001:2015, ISO 14001:2015, OHSAS 18001:2007 accreditations and MS 1454:2007, MS 177:1973, MS 1718:2003, MS 700:1981 and MS 171:2013 product certifications for operational purposes. These accreditations and certifications demonstrate the Group’s ongoing commitment to drive for excellence and continuous quality improvement. The Group has implemented Enterprise Resource Planning System (SAP) across its key business activities namely Chemicals Business and Polymers Business and the holding company, Chemical Company of Malaysia Berhad. This is part of the Group’s initiative to establish best practices across key business functions promoting greater visibility, transparency and efficiency. Annual assurance is provided by the Group Managing Director and the Senior Manager, Group Finance, being the person primarily responsible for the financial management of the Company, to the Board on the adequacy and effectiveness of controls in the business processes. Business Continuity Management (“BCM”) A framework on BCM has been established to ensure continuity of business in the event of a disaster. Recognising the diverse nature of risk and business within the Group, BCM in the Group is a business-owned and business-driven process that establishes a fit-for-purpose strategic and operational framework to proactively improve the business resilience against the crisis and its ability to achieve its key objectives. The framework includes a Crisis Management component at Group level which provides a rehearsed method of restoring the Group’s ability to supply its key products and services to an agreed or acceptable level within an agreed time after a crisis. Processes within the framework also support the objective of protecting the Group’s reputation and brand and adds to the overall assurance of achieving the strategic objectives of the Group. As part of the continuous BCM process, the Group also has a Succession Planning Framework for key positions; which amongst others includes structured plans to improve the Group’s bench strength in key positions, talent identification and retention, and strengthening the process in performance management. Code of Conduct and Core Values The Senior Management sets the tone for an effective control environment and culture within the Group through the Group’s mission, vision and core values. The Group developed its key pillars for all CCM employees to embrace on, based on the below six (6) core value tenets: • Passion – Inspire and energise to be the best • Excellence – consistently deliver outstanding performance • Teamwork – work as one • Integrity – being honest and ethical • Responsible – being accountable for our actions • Respect – value differences The importance of the shared values is manifested in the Group’s Code of Conduct, which incorporates the CCM’s vision, mission and core values. The Code of Conduct also embodies several of the principles contained in various policies adopted by CCM; and gives guidance on the application of the core values to the CCM Group’s businesses and activities. BUSINESS OVERVIEW FINANCIAL STATEMENTS OTHER INFORMATION GOVERNANCE 105 ANNUAL REPORT 2019