ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 50 PROCESS Management of Significant Risks The management of significant risks identified for the financial year ended 31 March 2020 are as follows: 1. Strategic Management Risks in managing principals and customers. The sales team’s current plan is to continue to increase knowledge and competency to add value to our services that will ensure dependency from both customer and principal. We focus on education, diversification, and transfer of knowledge to maintain and enhance the relationship in this ever challenging and changing environment. 2. Environmental Risk exist as we operate within both the oil & gas and property development industries/segments which are exposed to compliance risk of laws and regulations including those relating to health, safety, environment and compliance with the various certifications required for those industries. We currently have various preventive maintenance programs, training and development, and processes for risk assessment and monitoring and control based on ISO 9001 quality objectives. There is an approved plan to build our own chemical refilling and storage facility with proper safety and environmental control systems. 3. Project Completion Risk, as the Group has businesses both locally and overseas and is exposed to various risks relating to delay in procuring materials, project management risks, occupational health and safety risk, political risk, credit risk, foreign exchange risk, sub-contractor’s financial management, payment issuance and communication barriers. The Group has embarked on a more stringent role in terms of monitoring projects both locally and overseas such as appointing key people as project managers and regular monitoring, liaising with Group Legal on the terms of contracts and reporting on project progress to the EXCO. 4. COVID-19 Pandemic Risk, which at the onset of the coronavirus (prior to the World Health Organization officially naming the virus Covid-19) outbreak in Wuhan, China, ENRA’s Management had been monitoring it closely and the EXCO had approved the implementation of a BCP. The BCP was implemented on 27 February 2020, two weeks ahead of the Malaysian Government’s MCO, which was introduced on 18 March 2020. Under the BCP, employees had team arrangements, where the workforce were divided into two teams. One team would work from home while the other would work at the office, alternating on a weekly basis. There was a WhatsApp chat group set up to update on the COVID-19 status both locally and globally. Meetings were still held via tele/video conferencing both internally with staff and externally with business partners and auditors. There were also regular personal temperature measurements for staff working at the office, handouts of hygiene packs such as hand sanitisers and masks for the staff, special allowances provided to the staff for internet and vitamin C purchases, and regular updates from the Group Human Capital and Quality, Health, Safety and Environment Management departments. In addition, digital signatures were used to enable online banking for business payments, staff salaries, benefits, claims and allowance to ensure that it was maintained and paid as scheduled. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL RISK MANAGEMENT BASED ON ISO 31000 PRINCIPLES A. Creates and protects value B. Integral part of organisational processes C. Part of decision making D. Explicity addresses uncertainty E. Systematic, structured and timely F. Based on the best available information G. Tailored H. Take human and cultural factors into account I. Transparent and inclusive J. Dynamic, interactive and responsive to change K. Facilitates continual improvement and enhancement of the organisation FRAMEWORK Mandate and commitment Design of framework for managing risk Monitoring and review of the framework Continual improvement of the framework Implementing risk management Risk assessment Communication and consultation Monitoring and review Establishing the context Risk treatment Risk analysis Risk evaluation Risk identification