Roles and Responsibilities Board of Directors • Establishes the risk appetite • Oversees the implementation of the Risk Management Framework • Endorses and provides final approval to all risk management strategies and planning Risk Management and Sustainability Committee (“RMSC”) • 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 RMSC, the broad terms risk guidelines and risk appetite of the Group on a quarterly basis; • Review identified key risks of the Group’s operations; • Guide Business/Operations Head in identifying, evaluating and managing key risks; and • Report to the RMSC on material and pervasive findings which exceeded the risk appetite Head of Department • 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 RMSC for review and evaluation • Identifies potential and actual risks associated to their respective process; highlights the risk in the risk register and make appropriate recommendations and controls to mitigate the risk RISK MANAGEMENT OUTLOOK 2022 The opening of economic and social sectors propelled the Malaysian economy out of its economic trough in the third quarter of 2021, putting it on a path to recovery in 2022. Businesses are slowly returning to normality as owners are eager to restart and resume operations back to pre-COVID state. However, the recovery in late December 2021 and early 2022 was hindered by the worst flooding in decades, in certain regions. The effects of these two major events have affected the general picture of the Malaysian property market which include interruptions to the Group’s financial performance, property sales, delayed project deliverables, resource constraints, and others. The Group aims to limit exposure through suitable risk management measures, with the following risks being the most common throughout FY2022: Key Risks and Its Mitigation Strategy Throughout 2022 Key Risks Description Mitigation Strategy Building Materials Price Increase • Building Materials price increase due to a combination of many factors: 1. Production volume has significantly declined due to electricity rationing in China (the hub of manufacturing) 2. Raw material shortage causes disruptions in the supply chain 3. Huge amount of backlogs for orders received prior to lockdown • Having a specific division that can search for alternate sources and new suppliers Environmental Risk • Pollution incidents on site • Extreme weather events • Regular site sustainability assessments and mitigating controls in place • Raise awareness of dangers during extreme weather events and modify our strategy to reduce risks Roles and Responsibilities of Risk Organisation Throughout the financial year, any significant risks highlighted by respective Head of Departments within the organisation are monitored and analysed by the Risk Management Department and reported to the RMSC for their deliberation and management decision. The Board endorses a clear and defined risk organisation structure that outlines key responsibilities held by respective groups as defined below: 134 ANNUAL REPORT 2022
RkJQdWJsaXNoZXIy NDgzMzc=