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The IAD operates within the framework set out in the IA Charter and Code of Ethics which is approved by the Management and the AC. It
implements a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, controls and governance
processes. As part of the IA plan, IA will also perform independent reviews of the risks and controls identifed by the ERM to provide
reasonable assurance to management and the AC that the key risks and controls have been adequately monitored and addressed.
The AC, with the assistance of internal audit, reviews the adequacy and effectiveness of the system of internal controls of the Group on
an on-going basis. The Group also engages a reputable audit frm, from time to time, on an assignment basis to perform the internal
controls system review and the said audit frm has a direct reporting line to the AC.
Enterprise Risk Management (“ERM”)
Since May 2009, the Group has committed and continuously implements a comprehensive approach of managing risks across the Group.
This is made possible through a systematic, integrated and well-coordinated risk management strategy, establishment of a well structured
ERM unit, putting in place a carefully defned risk management framework, strong support from the Board and an Independent AC and,
by constantly promoting awareness that managing risk is everybody’s business, i.e., from the risk owners, middle management and up
to the senior executive management and the Board.
Our integrated framework of managing risks includes coordination across the “Lines of Defense” involving all operating and functional
units, and oversight functions for the timely and proper identifcation, assessment, mitigation, reporting and monitoring of risks which
may impact the business drivers and adversely affect the Group’s ability to achieve its business objectives.
Improve Sustainable Business
Manage Risk(s) and Minimise Impact
Board/Executive Management
Achieve Business Objective
Business Drivers/
Source of Risks Risks/Issues
Coordinated Approach to Risk
Activities Coverage
Assess
Mitigate
report
Monitor
Operations
Units
- Estates
- Mills
- Refnery
- Engineering
- R&D Breeding
- Transportation
Support
Functions
- Procurement
- Accounting
- Treasury
- Budget
- Legal
- HR
Monitoring Oversight
Monitoring
and Control
Functions
- Enterprise Risk
Management
- Internal Audit
- Inspection
Services
- Systems &
Procedures
Oversight
- BOD
- Executive
Management
- Audit Committee
- Steering
Committees
Strategic
Operations
Finance
Compliance
Business
Strategic/
Strategic
Initiatives
- Short-term Program
- Long-term Program
Industry Issues
- External/Industry
Trends
- Others
Compliance
Performance
Coordination Across
The “Lines of Defense”
Indofood Agri Resources Ltd. • Annual Report 2012 53