Overview

Enterprise Risk Management Policy

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INTRODUCTION

Risk management is a process to identify, assess, manage, and control potential events or situations, to provide reasonable assurance regarding the achievement of objectives. KPS Berhad reflect the latest practice in risk management and in line with ISO 31000. KPS Berhad takes into consideration the fast paced technology advancement, globalisation, industry consolidation, supply chain complexities as well as other factors are causing the business environment to becoming unique and challenging. Today’s business landscape has created a range of equally complex and interrelated risks which requires KPS Berhad to be agile, dynamic and pragmatic.

PURPOSE

  • Sets out KPS Berhad’s definition of risk, enterprise risk management and key principles that all divisions, departments, subsidiaries and associate must adhered to.
  • Sets out the foundations and arrangements that KPS Berhad will adopt consistent with the ISO31000:2018, Risk Management Guidelines in embedding the risk management process throughout KPS Berhad including subsidiaries.
  • Enterprise Risk Management ("ERM") Reporting and Monitoring Structure which facilitates the process of communicating risk related information and ensuring effective oversight of risks and risk management activities throughout the organisation.
  • A structured ERM processes that are consistent with the ISO31000:2018 - Risk Management Guidelines tailored to KPS Berhad risk appetite.

GUIDING PRINCIPLES

  • ERM creates and protect value
  • ERM is an integral part of KPS Berhad decision making processes
  • ERM explicitly addresses uncertainty
  • ERM is systematic, structured and timely
  • ERM is based on the best available information
  • ERM is tailored to KPS Group’s needs
  • ERM takes human and cultural factors into account
  • ERM is transparent and inclusive
  • ERM is dynamic, interactive and responsive to change
  • ERM facilitates the continuous improvement process at KPS Group

SCOPE

This Policy applies to KPS Group collectively for implementing the ERM policy across KPS Berhad and all subsidiaries.

OBJECTIVES

  • Keep the Board of KPS Berhad informed and advised of all aspects of ERM and significant key risk areas and emerging risk as the need arises.
  • Continuously enhance the risk awareness and understanding amongst KPS Group’s Senior Management and staff.
  • Provide guidance for the establishment and effective implementation of ERM processes in including establishing proper risk structure and strategy, a process to identify, analyse, evaluate, treat, communicate and monitor risk.
  • Embedded into the day to day decision making process.