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Food Empire Holdings Limited Annual Report 2014
CORPORATE GOVERNANCE
I)
RISK MANAGEMENT AND INTERNAL CONTROLS
- Principle 11: Sound systems of risk management and internal controls
The Board is responsible for the governance of risk and sets the tone and direction for the Group in the way
risks are managed in the Group’s businesses. The Board has ultimate responsibility for approving the strategy
of the Group in a manner which addresses stakeholders’ expectations and does not expose the Group to an
unacceptable level of risk.
The Board approves the key risk management policies and ensures a sound system of risk management
and internal controls and monitors performance against them. In addition to determining the approach to
risk governance, the Board sets and instils the right risk focused culture throughout the Group for effective
risk governance.
The Board has approved a Group Risk Management Framework for the identification of key risks within the
business which is aligned with the ISO 31000:2009 Risk Management framework.
The AC oversees risk governance which includes the following roles and responsibilities:-
1)
proposes the risk governance approach and risk policies for the Group to the Board;
2)
reviews the risk management methodology adopted by the Group;
3)
reviews the strategic, financial, operational, regulatory, compliance, information technology and other
emerging risks relevant to the Group identified by management; and
4)
reviews management’s assessment of risks and management’s action plans to mitigate such risks.
Management presented an annual report to the AC and the Board on the Group’s risk profile, the risk mitigation
action plans and the results of various assurance activities carried out on the adequacy of Group’s internal
controls including financial, operational, compliance and information technology controls. Such assurance
activities include control self-assessments performed by Management, internal, external audits and external
certifications conducted by various external professional service firms.
The Board has obtained a written confirmation from the Executive Chairman, CEO and CFO:-
1)
the financial records have been properly maintained and the financial statements give a true and fair view of
the Group’s operations and finances; and
2)
the Group maintains an effective risk management systems and internal control systems.
Based on the internal controls established and maintained by the Group, work performed by the internal, external
auditors and external certification firms and reviews performed by management, various Board Committees
and the Board, the AC and the Board are of the opinion that the Group’s risk management and internal control
systems including financial, operational, compliance and information technology controls, were adequate and
effective as at 31 December 2014.
