TOP RISK |
DESCRIPTION & IMPACT |
KEY MITIGATION MEASURES
|
1. ADVERSE IMPACT OF ECONOMY-WIDE PHENOMENA TOWARDS BUSINESS PERFORMANCE
|
Inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment.
|
- Market intelligence and being up-to-date on market conditions;
- Hedging through a mix of spot and forward contract sales;
- Creation of new revenue stream;
- Enhance the productivity and efficiency through an innovative solution;
- Cost optimization initiatives and prudent CAPEX and OPEX management;
- Improve market opportunities through maintaining RSPO, MSPO, ISCC certifications; and
- Constant monitoring of CPO and PK prices.
|
2. NEW INVESTMENT’S RISKS IN RESPECT OF THE INDUSTRY, LAWS AND REGULATIONS, POLITICS, COUNTRY AND LOCAL RISKS
|
Various internal and external factors that can
converge to create investment risk, which will
either lower the return from the investment or
lead it to fail.
|
- Continuously explore and secure new opportunities with innovative solutions;
- Comprehensive due-diligence exercise and feasibility study for each new investment;
- Putting in place workable internal control and monitoring framework including corporate and systems infrastructure;
- Revisit and strengthen the strategy to ensure the success of the investment; and
- Proactive engagement with business partners and local stakeholders.
- Established the Board Investment Committee to review the significant matters relating to existing and potential investments
|
3. LIQUIDITY RISK ON EXISTING AND FUTURE FUNDING
REQUIREMENTS IN MEETING ITS FINANCIAL OBLIGATIONS
|
Liquidity is the ability of a firm, company, or
even an individual to pay its debts without
suffering catastrophic losses.
A healthy liquidity risk indicates the ability of a
firm or company to pay its debt without suffering
catastrophic losses.
|
- Matching of inflows and outflows of cash and maintaining ufficient credit facilities;
- Borrowings are created in a particular currency to match payments and receipts or liabilities and assets;
- Capital restructuring; and
- Monitor the agreed covenants with the lenders
|
4. HIGH DEPENDENCY ON FOREIGN WORKERS IN
PLANTATION OPERATION
|
The Group faces the challenge of depending on
foreign workers to carry out most of the field
works in the estates e.g. harvesting, fruit loading,
manuring, spraying, etc.
|
- Reviewing the remuneration packages of workers from time to time.
- Enhancement of mechanization, automation and technology to reduce labor usage.
- Joint collaboration with agricultural/ labor authorities to increase the participation of local labors in the plantation sector.
- Uplifting living conditions and amenities of workers through upgrading the quarters as well as providing crèche, mosque and medical facilities.
|