Page 22 - sr_2012.pdf

corporate governance andmanagement
The Board and Management of IndoAgri are committed
to enhance the standard of corporate governance and
the processes in managing the business and its affairs,
so as to improve performance, accountability and
transparency of the company.
The Board is chaired by an independent non-executive
director, and comprises four executive directors, four
independent directors and two non-executive directors. Of
these directors, six are Indonesians, three Singaporeans
and one British.
The Board is assisted by various sub-committees in
discharging its responsibilities, including the Executive
Committee, the Audit Committee, the Nominating
Committee and the Remuneration Committee.
enterprise risk management
and sustainability
SinceMay 2009, IndoAgri has implemented a comprehensive
approach in managing risks across the Group. This is
done through a systematic, integrated and coordinated
risk management strategy and framework executed by
the Enterprise Risk Management (ERM) unit. The ERM
unit reports to the Executive Committee as well as to an
independent Audit Committee. It works across all divisions
and is supported by a committed Board leadership, and
a strong management team who constantly promotes
and emphasises the message that risk management is
the responsibility of every employee.
The integrated ERM framework includes coordination
across the “Lines of Defence” that involves all operating
and functional units in the timely identification, escalation
and resolution of risks and exposures that could
compromise IndoAgri’s ability to achieve its business
objectives and results. To reinforce our ERM strategy, we
have implemented a Business Code of Conduct along
with a whistle-blowing system.
As risk management and sustainability share many
common issues, the Head of ERM is directly involved
in advising the Board on the sustainability strategy and
compliance. The respective risk owners and business unit
managers conduct quarterly assessment of current and
emerging risks and prepare the risk assessment reports.
The ERM unit analyses the risk assessment reports,
reviews the ERM strategy, and proposes an action plan
to address the issues. The risk assessment reports are
shared with the internal audit team, who validates the
reports and actions taken. The ERM team also ensures
that the company complies with new regulations and
updates the Standard Operating Procedures (SOP)
accordingly.
Through our ERM system, IndoAgri has identified the
following sustainability risks:
Strategic Risks
Sustainable palm oil – changing industry trends and
requirements could threaten IndoAgri ’s abi l ity to
ensure a sustainable business operation, resulting in
an unfavourable perception among the stakeholders
and the loss of competitive advantage for the Group.
Mr Lee Kwong
Foo Edward
Chairman and Lead
Independent Director
Mr Lim Hock
San
Vice Chairman and
Independent Director
Mr Mark
Wakeford
Chief Executive Officer
and Executive Director
Mr Moleonoto
Tjang
Executive Director and
Head of Finance and
Corporate Services
Mr Suaimi
Suriady
Executive Director and
Head of Edible Oils &
Fats Division
Indofood Agri Resources Ltd.