Page 90 - S P Setia Annual Report 2016

 

 

 

 

 

Page 90 - S P Setia Annual Report 2016
P. 90

88    S P Setia Berhad Group                                 Our Business | Our Performance Review | Our Leadership and People
                Annual Report 2016                                        | Our Achievements and Accolades | Our Sustainability Statement
                                                                         | Our Governance | Our Financial Statements | Other Information




          Statement of Risk Management and Internal Controls


                                KEY RISKS                                   KEY CONTROLS AND MANAGEMENT


          Digital Risk
          The Group’s business and operations may potentially be exposed to   We ensure proactive measures are taken to build digital resilience to
          rapid digital/information technological advancement. It may affect   protect our information assets. In tandem with digital transformation
          the manner in which business and operations are conducted.  trends, the Group constantly keeps abreast with the latest digital
                                                                 developments while leveraging on the relevant digital platforms
                                                                 to connect with our customers and to meet the demand for new
                                                                 business innovation and growth.

          Competition Risk
          The Group faces competition from both local and international   The Group ensures proactive measures are taken to maintain its
          property developers.                                   competitiveness through product differentiation and continues to
                                                                 strengthen its brand value.

          Regulatory Risk
          The Group’s operations are subject to the jurisdiction of various   The Group proactively keeps abreast with the latest regulatory
          governmental agencies or ministries. Any changes in prevailing laws   changes. Management regularly assesses the impact of new or
          or regulations in Malaysia and other countries in which we operate   changed regulations that affect the Group’s operations and necessary
          (i.e. Australia, the United Kingdom, China, Vietnam and Singapore)   steps are taken to ensure compliance with the regulations.
          may have an impact on the Group.

          Contractors’ Efficiencies
          Contractors play a key role in the industry in which the Group operates   The Group endeavours to mitigate this risk by putting in place various
          and their efficiency and proficiency to a significant extent influence   policies and procedures which include stringent selection criteria
          the Group’s delivery of key projects.                  on contractors, having regular performance assessments to ensure
                                                                 product quality and timely completion of projects. A sufficient pool
                                                                 of reputable contractors with good track records is also maintained
                                                                 within the Group.

          Contractors’ Efficiencies
          Contractors play a key role in the industry in which the Group operates   The Group endeavours to mitigate this risk by putting in place various
          and their efficiency and proficiency to a significant extent influence   policies and procedures which include stringent selection criteria
          the Group’s delivery of key projects.                  on contractors, having regular performance assessments to ensure
                                                                 product quality and timely completion of projects. A sufficient pool
                                                                 of reputable contractors with good track records is also maintained
                                                                 within the Group.

          Workplace Health and Safety
          The Group is potentially exposed to workplace health and safety   The Group is committed to ensuring a safe working environment.
          (including environmental) risks during the period of construction.   These risks are managed by the Group through the strong promotion
                                                                 of a health and safety culture. We remain focused on continuously
                                                                 enhancing the high standard of health and safety on-site. This aim is
                                                                 expressed in several initiatives such as having well defined health and
                                                                 safety policies and procedures, health and safety awareness-raising
                                                                 and training initiatives, continuous improvement of construction
                                                                 methods and communication campaigns with our appointed
                                                                 contractors, and more stringent on-site controls and enforcement.
                                                                 The Group respects the surrounding eco-system/environment
                                                                 where the Group’s property development projects are located. The
                                                                 Group ensures that environmental factors are incorporated into the
                                                                 design, construction, operation and maintenance of structures to
                                                                 safeguard the sustainability and the future viability of the property
                                                                 development upon its completion and handover to the purchasers.
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