The Board of Directors has the overall responsibility for the establishment and oversight of the Company’s risk management framework.
The risk management policies of the Company are established to identify and analyze the risks faced by its consolidated group of companies (the “Food Group”), to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies, systems and processes, as well as practices, are continuously reviewed to reflect changes in market conditions and the Food Group’s activities. The Food Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
Risk management functions are performed at the management committee level of each operating subsidiary of the Company, as well as assumed by the heads of each business unit and corporate service unit of the Company. Further, every manager is tasked to ensure compliance with all operational and financial controls in his/her area of responsibility and to implement internal controls as part of the total system to achieve the goals of the Food Group. Managers conduct regular evaluation of existing policies, systems and procedures to ensure that these remain relevant and effective to the current operating environment. Management also gives prompt and cooperative consideration to recommended improvement measures made by independent internal or external audit groups.
The Audit Committee, on the other hand, performs oversight financial management functions specifically in the areas of managing credit, market, liquidity, operational, legal and other risks of the Company, crisis management, and corporate governance compliance. The Audit Committee oversees how management monitors compliance with the Food Group’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Food Group. The Audit Committee is assisted in its oversight role by the Company’s Internal Audit Group. The Internal Audit Group undertakes both regular and ad hoc reviews of the Food Group’s risk management controls and procedures, the results of which are reported to the Audit Committee.