Fraser & Neave Holdings Bhd Sustainability Report 2021

RISK MANAGEMENT At F&NHB, we focus on three key areas in overall risk management framework: 1 Business Operational Risks 2 Integrating material sustainability issues 3 Emerging risks which may impact us in mid or even long-term basis We have integrated the material sustainability issues into our overall risk management framework by identifying specific risks, opportunities, and key priorities for the financial year to drive our strategic decisions. Specific sustainability risks are managed as part of the Enterprise Risk Management. This helps us to develop better products and create more meaningful value for our stakeholders. Risk appetite and risk tolerance statements are reviewed by the SRMC and approved by the Board annually. At the end of the financial year, the Board receives assurance from the CEO and Chief Financial O+cer 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 the ERM Validation Report and Comfort Matrix. APPROACH Material Issues Key Risks Read more about the risk management process in our Annual Report 2021, pages 140 to 141. Economic Social Environment Financial/economic Strategic Governance & Ethics Reputational Operational Product Quality & Safety Product & Service Labelling Other Financial Risks Significant Increase in Commodity Prices Supply Chain Stewardship Strategic Risk Involving New Business Investment Governance & Ethics Inability to Anticipate/Respond Timely to Changing Consumer Needs Economic Performance Risk from Disruptive Digital Technology & Innovation Policy & Regulation Corruption, Fraud, Pilferage & Ethical Risks Innovation Non-compliance with Laws, Rules, Regulations & Standards Nutrition Managing Stakeholders, Expectations & Perceptions Human Rights Environmental Damage Community Development & Inclusive Growth Political/International Instability & Geopolitical Risk Employee Safety, Health & Well-being Product Quality & Standards Infectious Disease Human Capital Development Health, Safety & Security Packaging Cyber Threats & Data Security Risk Waste Management Water Stewardship Talent Management & Succession Planning Energy Supply Chain Risks Climate Change Biodiversity Responsible Business Practice 045 Fraser & Neave Holdings Bhd ! Sustainability Report 2021