Fraser & Neave Holdings Bhd Annual Report 2021

BUSINESS CONTINUITY MANAGEMENT The Board is cognisant of the importance of business continuity management (“BCM”) in strengthening the Group’s resilience in response to the evolving business environment and enhancement of shareholders’ values. F&NHB has in place the following components within the BCM Framework to enable the Group’s operations to be prepared in the event of emergencies: • business impact analysis; • development of BCM strategies and plans; • business recovery procedures; • business continuity testing and exercise; and • monitoring and evaluation of the overall e!ectiveness of BCM. The Group’s pandemic preparedness was further strengthened, as seen from the cohesive responses and excellent teamwork amidst reduced workforce, work-from-home arrangement as well as collaboration and coordination with our external stakeholders such as our customers and suppliers impacted by the COVID-19 pandemic. The Framework and the BCM plans developed are reviewed on an annual basis and tested periodically to ensure that it is up-to-date and relevant to the business environment. In addition, annual testing on Disaster Recovery which involves IT, vendors and respective department are conducted to ensure systems are able to recover in an organised, e&cient and e!ective manner. AUDIT COMMITTEE AND GROUP INTERNAL AUDIT Group Internal Audit performs periodic audits of subsidiaries within the Group in accordance with an annual internal audit plan, which is formulated through a comprehensive risk-based methodology and approved by the Audit Committee. The audits are designed to test the appropriateness of control design and implementation as well as compliance with the existing policies and procedures. Based on the audits performed, areas of improvement on control design and implementation are highlighted, on a quarterly basis, to the Audit Commit tee and Management to implement internal audit recommendations. Status of implementation of agreed audit recommendations is tracked until completion and quarterly updates are provided to the Audit Committee and Management. Further details on the activities of the Audit Committee and Group Internal Audit are set out in the Audit Committee Report. BOARD COMMENTARY AND OPINION The Board, through the SRMC and Audit Committee, has undertaken review of the adequacy and e!ectiveness of risk management and internal control system in accordance with the Terms of Reference during the year under review. The Board is of the view that the Group’s overall risk management and internal control system is sound and adequate in all material aspects, and has received the same assurance from both the CEO and CFO of the Group. The Board ensures that the risk management process in identifying, evaluating and managing significant risks is operating adequately and e!ectively throughout the financial year up to the date of approval of this Statement. It is in the Board’s opinion that the Group’s system of internal control during the year under review is adequate and e!ective to safeguard the Group’s assets and the interests of shareholders and stakeholders. REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS The External Auditors, KPMG PLT had reviewed the Statement pursuant to the scope set out in the Audit and Assurance Practice Guide (AAPG 3), Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control included in the Annual Report issued by the Malaysian Institute of Accountant and have reported to the Board that nothing has come to their attention that has caused them to believe that the Statement has not been prepared in accordance with the disclosures required by paragraphs 41 and 42 of the Statement on Risk Management and Internal Control Guidelines for Directors of Listed Issuers or is factually inaccurate. This Statement is made in accordance with the resolution of the Board dated 3 November 2021. Governance 143 Fraser & Neave Holdings Bhd ! Annual Report 2021