Tropicana Corporation Berhad Annual Report 2019

TROPICANA’S COMMITMENT TO RESPONSIBLE RISK MANAGEMENT To safeguard the interest of our business and that of our stakeholders, the Group adopts a robust risk management framework using the guidelines outlined in the Main Market Listing Requirement by Bursa Malaysia Securities Berhad (“ Bursa Malaysia ”). The framework is integrated into the Group’s overall management systems, defining the authorities involved, their responsibilities and accountability for implementing relevant internal controls. THE RISK MANAGEMENT FRAMEWORK In pursuant to Chapter 15 (Corporate Governance) Paragraph 15.26 (b) of the Main Market Listing Requirements of Bursa Malaysia, the Group emphasises its commitment to risk management and internal control by implementing the Practices and Guidance stipulated in the Malaysian Code of Corporate Governance (“ MCCG ”) 2017. The Group also makes informed decisions and sets sound internal control measures by referring to the Statement on Risk Management & Internal Control: Guidelines for Directors of listed issuers as prescribed by Bursa Malaysia. To ensure compliance with these guidelines, our internal audit department regularly reviews the integrity and effectiveness of the Group’s system of internal controls. BOARD OF DIRECTORS’ RESPONSIBILITIES The Board endorses the Group’s risk management framework; delegating primary responsibilities for the implementation of the framework across the Group’s business operations to Tropicana’s Risk Management Committee, the Risk Management Department and Business/Operations Head. The Risk Management Framework includes the ongoing process of identifying, evaluating, responding, managing and monitoring risks that may affect the Group’s business performance, ensuring that optimum operational function is maintained at an acceptable risk appetite while striving to achieve Tropicana’s overall strategic objectives. Details of the Risk Management Framework are periodically reviewed by the Board. The Board acknowledges and approves the ongoing processes outlined in the Risk Management Framework for the financial year under review, ensuring that internal control systems are in place and effective measures are applied to responsibly manage, rather than eliminate, risks to our financial and operational processes and achieve the Group’s long term business goals while remaining fully compliant to regulatory requirements. These systems manage risks relevant to the Group’s business goals and can only provide reasonable, not absolute, assurance against material misstatement, fraud or loss. For the purpose of this review, the extent of responsibility does not extend to include that of the Group’s associated companies. Statement on Risk Management and Internal Control RISK MANAGEMENT GOVERNANCE AND PROCESSES In emphasising the Board’s continued commitment to developing an effective Risk Management Framework, a Risk Management Department and the Enterprise Risk Management Programme (“ ERM ”) were formalised in the year 2012. The monitoring role of risk management is assigned to the Group’s Risk Management Committee (“ RMC ”) with the Board at its apex of the governance structure. The RMC comprises representatives from the Board of Directors, the Chief Executive Officer and Top Management with the support from the Group’s Risk Management Department. The RMC reviews and endorses the Risk Management Process (“ RMP ”), receiving quarterly updates on the following matters: • The Group’s risk register, encompassing significant and potential risks; • Changes in risk status upon the implementation of mitigation measures; and • Summary reports on the progress of agreed action plans for risk management. Details of the Risk governance structure as implemented by Tropicana is presented below. 1. Risk Identification 4. Risk Ownership 2. Risk Evaluation 5. Risk Action Plan 3. Risk Response 6. Risk Reporting Risk Management Risk Analysis Continuous monitoring, review, communication, consultation > > Tropicana Corporation Berhad Annual Report 2019 pg 96 About Tropicana Our Strategic Performance Our Leadership