Tropicana Corporation Berhad Annual Report 2019

Roles and Responsibilities Board of Directors • Oversees the implementation of the Risk Management Framework • Endorses and provides final approval to all risk management strategies and planning Risk Management Committee (“RMC”) • Receives quarterly updates of the Group’s risk management progress • Advises on risk management measures to be initiated by the Risk Management Department and applied by the Business/Operations Head Risk Management Department • Review adequacy and effectiveness of risk management process and system • Review and present to the RMC, the broad terms risk guidelines and risk appetite of the Group on a periodic basis • Review identified key risks of the Group’s operations • Guide Business/Operations Head in identifying, evaluating and managing key risks • Report to the RMC on material and pervasive findings which exceeded the risk appetite and make appropriate recommendations Business/Operations Head • Implements the risk management processes approved by the Board • Submits quarterly updates via the risk register to the Risk Management Department to be presented to the RMC for review and evaluation • Identifies potential and actual risks associated to their respective process and highlights the risk in the risk register INTEGRATING RISK MANAGEMENT WITH SUSTAINABILITY As the Group strives towards continuous improvement of its business processes, the comprehensive risk management framework considers the sustainability of internal controls with regards to minimising business risks without compromising potential opportunities. We seek to find a balance between focusing on business gains and considering our impacts on the environment and society. INTERNAL CONTROL SYSTEMS • The Group has a clear organisational structure which formally defines the lines of reporting, as well as the accountabilities and responsibilities of the respective functions within the Group. • In addition, the Board of Directors and its various Board Committees are all governed by clearly defined terms of reference. The following are the Board and Management Committees which have been established to assist the Board in discharging its duties: v Audit Committee v Risk Management Committee v Nomination Committee v Remuneration Committee v Pricing Committee v Investment Committee • The Group has a clear limits of authority which defines the approving limits that have been assigned and delegated to each approving authority within the Group. The limits of authority will continue to be reviewed periodically and updated in line with changes in the organisation. • Internal control activities have been established in all business segments within the Group with clearly defined lines of responsibilities, authority limits for procurement and capital expenditure, awarding of contracts, approving operating expenditures and other significant transactions, segregation of duties, performance monitoring and safeguarding of assets. Tropicana Corporation Berhad Annual Report 2019 pg 97 Sustainability at Tropicana What We’ve Governed Financial Statements & Other Information