Fraser & Neave Holdings Bhd Annual Report 2021

• Key Risk Indicators (“KRIs”), presented in the form of Key Risk Dashboard, are also established to monitor risks and mitigating measures for risks that are material to the Group and included as part of the quarterly risk reporting. • Changes to risk profiles and emerging risks are also identified and promptly brought to the attention of the Board and Board Committees. For discussion on assessment of key risk areas and the controls in place to mitigate or manage those risks, refer to Management Discussion & Analysis section of the Annual Report. ASSURANCE RECEIVED FROM MANAGEMENT At the end of the financial year, the Board receives assurance from the CEO and Chief Financial O&cer (“CFO”) that the risk management and internal control system in place for the Group is adequate and e!ective to address risks which the Group considers relevant and material to its operations through ERM Validation Report and Comfort Matrix. ERM Validation Report summarises the risk management activities conducted and implementation of ERM Policy during the financial year whilst the Comfort Matrix sets out the key risks of the Group and presented against how strategies, policies, people, processes, systems, mechanisms and reporting processes that have been put in place, in addressing these risks. Both ERM Validation Report and Comfort Matrix are tabled at the SRMC and Audit Committee meetings respectively prior to recommendations to the Board on an annual basis. In addition, the risk management process in the Group is reviewed on a periodic basis by Internal Audit team, according to its annual audit plan approved by the Audit Committee. INTERNAL CONTROL The following areas of governance contained clearly defined corporate values, code of business ethics and conduct as well as comprehensive policies and procedures to assist Management in ensuring that a sound system of internal control is maintained in the Group. INTEGRITY AND ETHICAL VALUES A framework which consists of Code of Business Ethics & Conduct, Whistleblowing Policy, Fraud Control Policy, Anti-Bribery and Anti- Corruption Policy and Code of Business Practices for Third Parties sets the expectation in upholding integrity and ethical values within the Group and they are made available to all sta! in the Group’s intranet and the Group’s website. CODE OF BUSINESS ETHICS & CONDUCT Code of Business Ethics & Conduct (“the Code”) prescribes the values and principles committed by F&NHB and expects employees in F&NHB to act with integrity, respect and excellence. It defines expected behaviour for employees in dealing with key stakeholders in the Company, workplace, marketplace, and external stakeholders such as customers and suppliers. Provisions in the Code include (but are not limited to) the following: • Protection of Company’s assets. • Confidential information. • Accuracy and completeness of accounting records and reports. • Anti-discrimination and anti-harassment. • Product quality. • Anti-competitive behaviour. • Conflict of interest. FRAUD CONTROL POLICY Fraud Control Policy defines a process focussing on the prevention, detection and management of fraud and applies to any irregularity, or suspected irregularity, involving employees as well as shareholders, consultants, vendors, contractors, external agencies and employees of such agencies, and/or any other parties with a business relationship with F&NHB. The Group adopts a “zero tolerance” stance towards fraud. Where fraud is suspected, investigations will be conducted and where fraud has been established, appropriate actions will be taken in line with existing policies and procedures. ANTI%BRIBERY AND ANTI%CORRUPTION POLICY AND CODE OF BUSINESS PRACTICES FOR THIRD PARTIES F&N has been governed by integrity, honesty, fair dealing and compliance with applicable laws and regulations. The Group adopts a “zero-tolerance” stance in all forms of bribery and corruption by its employees and business associates, and is committed to uphold all applicable laws and regulations. In line with the foregoing, F&N implemented the Anti-Bribery and Anti-Corruption Policy and Code of Business Practices for Third Parties which prohibits all forms of bribery and corruption practices. Financial/ Economic Strategic Governance & Ethics Operational Reputational Governance 141 Fraser & Neave Holdings Bhd ! Annual Report 2021