FORGING AHEAD - Tradewinds Plantation Berhad

The Board of Directors (“the Board”) is ultimately responsible
for the Group’s system of internal control, which includes the
establishment of an appropriate control environment and
framework, as well as reviewing its adequacy and efficiency.
The Board acknowledges that risks cannot be completely
eliminated. The system by its nature can only provide
reasonable and not absolute assurance against material
misstatement, operational failures, fraud or loss.
RISK MANAGEMENT
A formal group-wide enterprise risk management framework
covering the Group’s core business activities to identify,
evaluate and manage significant business risks that may affect
the achievement of its business objectives has been approved
by the Board and implemented. This enterprise risk
management framework is continuously reviewed by the
Board for its adequacy and effectiveness.
Management is responsible to inculcate a risk-awareness
culture and continuously reviewing the existing risk
management framework to enhance risk awareness for
managing risks and internal control, ensuring compliance with
applicable laws and regulations and the policies adopted by
the Board.
The following key features have been incorporated in the
Group’s risk management framework :-
1. The Group reaffirms its on-going process of risk
management by conducting relevant courses on risk
awareness, risk assessment process and methodology to
keep abreast with latest developments and requirements.
The group-wide risk assessment process includes reevaluating
existing key risk areas and identifying new
key risk areas, potential impact and likelihood of those
risks occurring, the effectiveness of control and adopting
the appropriate action plans to mitigate those risks.
CORPORATE GOVERNANCE
The risk reports of each business unit and support services
department across the Group are updated and presented
to the Risk Management Committee for review and
thereafter to the Board on a semi-annual basis on the
significant risks and controls available to mitigate those
risks.
2. Evaluating key risks facing each business and operation
of the Group, potential impact and likelihood of those
occurring, the control effectiveness and action plans to
manage those risks will continuously be carried out
throughout various divisions, subsidiaries and
departments by the Management.
OTHER KEY ELEMENTS OF INTERNAL CONTROL
Apart from the above, the other key elements of the Group’s
internal control system which has been reviewed by the Board
are described below:-
1. Specific responsibilities have been delegated to the
relevant Board Committees which have written Terms of
Reference. These Committees have the authority to
examine all matters within their scope of responsibility
and report back to the Board with their recommendations.
The ultimate responsibility for the final decision on all
matters however lies with the Board.
2. The management of the various companies in the Group
is delegated to the respective heads of operation and
their management teams, whose roles and responsibilities
and authority limits are set by the holding company’s
Board.
3. The Management is responsible for the periodic review
and stream lining of policy and procedural manuals to
be adopted across the Group. These are supplemented
by operating standards set by Management for
application across the Group.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010
65