INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
59.
As part of its commitment to good corporate governance and effective risk management, the Group implemented a Business
Continuity Management (BCM) System in 2013. The BCM is integral to the Group’s overall Operational Risk Management and
ensures the continuity of business operations and services to maintain public trust and confidence in the event of a disaster or
crisis. The BCM is focused on establishing high-level resilience against the failure to deliver critical services during a crisis,
and on minimising the impact of natural and man-made disasters on the Group’s operations.
As part of the BCM programme, a number of possible disaster scenarios were created and related controls were identified
and put in place to mitigate and minimise impact on operations. The incidence of a plantation fire was one such scenario.
The control measures included daily monitoring of hotspots based on data from NOAA18 satellite and the observation of fire
incidence (if any) by designated fire patrol teams, fire prevention training and exercise in fire-prone estates/areas, conduct of
inventory checks on fire-fighting equipment in every estate, mapping of water sources, and continuous socialisation to keep
all employees, contract workers and local community members safe. With this, the Group was able to manage and minimise
the effects of fires arising from the extreme El Nino experienced in Indonesia in 2015.
Significant Risks
On a quarterly basis, the ERM team, in coordination with the respective risk owners and Heads of operating units and supporting
departments, conducts an assessment of identified risks and the controls in place. The ERM teammonitors the progress of the
ERM action plan to mitigate risks and reports significant risks and exposures to the Board and the AC & RMC.
The Management implements risk mitigation strategies and controls to address the significant risks. The following list outlines
some of the significant risks that were closely monitored during the year.
IMPROVE SUSTAINABLE BUSINESS
MANAGE RISK(S) AND MINIMISE IMPACT
ACHIEVE BUSINESS OBJECTIVE
BUSINESS DRIVERS/
SOURCE OF RISKS RISKS/ISSUES
COORDINATED APPROACH TO RISK
ACTIVITIES
COVERAGE
ASSESS
MITIGATE
REPORT
MONITOR
OPERATIONS
UNITS
– Estates
– Mills
– Refinery
– Engineering
– R&D
Breeding
– Transportation
SUPPORT
FUNCTIONS
– Procurement
– Accounting
– Treasury
– Budget
– Legal
– HR
MONITORING
OVERSIGHT
MONITORING
AND CONTROL
FUNCTIONS
– ERM
– Internal Audit
– Inspection
Services
– Systems &
Procedures
OVERSIGHT
– BOD
– Executive
Management
– Audit
Committee
– Steering
Committees
STRATEGIC
OPERATIONS
FINANCE
COMPLIANCE
BUSINESS
STRATEGIC/
STRATEGIC
INITIATIVES
– Short-term
Programme
– Long-term
Programme
INDUSTRY ISSUES
– External/Industry
Trends
– Others
COMPLIANCE
PERFORMANCE
Coordination Across
The “Lines of Defense”
BOARD/EXECUTIVE MANAGEMENT
C
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P
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