Chemical Company of Malaysia Berhad Annual Report 2019

ACTIVITIES DURING THE YEAR Risk Reporting Quarterly reports to RMC highlighting the Group’s Risk Profile to enable Board and Management to focus on, appraise and consider key risks affecting the Group’s businesses and operations and the system of internal control necessary to manage and mitigate such risks. The RMC reviewed the top risks for the Group and its business divisions. The reports highlight the movements of risk ratings as well as the progress of treatment plans that were identified to mitigate the risks. The top risks for 2019 are in the following areas: 1. Operational Risk The management of operational risks (such as those relating to health and safety, production, distribution, compliance) is closely monitored by respective Risk Owners, with risk mitigation plans proposed and implemented. Risk awareness workshops were conducted to create a risk-aware culture, which would ensure greater understanding of the importance of riskmanagement, and that its principles are embedded in key operational processes. The workshops provided reasonable assurance that significant risks were identified and addressed. In total two (2) risk workshops were conducted which covered the Corporate Office and the Chemicals business. 2. Project Risk All projects that require the approval from the Finance and Investment Committee (‘FIC’), is subjected to risk assessments, where the risk registers resulting from the assessment together with the mitigation plans are included in the projects’ proposals. Project risk updates post implementation of the projects are tracked and reported as part of the risk management reporting process. 3. Competition Risk The Group continues to review current business status against its competitors and market. Strategies are developed, reviewed and updated to ensure its relevance in maintaining CCM’s competitive position. These strategies are explained in the Group Managing Director’s operations review. 4. Financial and Liquidity Risk The Group is exposed to various financial risks relating to credit, liquidity, foreign currency, interest rates and exchange rates. The Group’s risk management objectives and policies coupled with the required quantitative and qualitative disclosures relating to its financial risks are explained in the financial statements. 5. Culture Building Risk management culture is continuously inculcated throughout the organization through continuous monitoring and planned risk review sessions by the Group Risk Management unit (GRM). BUSINESS OVERVIEW FINANCIAL STATEMENTS OTHER INFORMATION GOVERNANCE 97 ANNUAL REPORT 2019