Risk Management
Robust corporate governance and a culture of vigilance are deeply embedded into each of our entities’ DNA and serve as the core foundations for enduring success. Volatility, brought about by changes in the external operating environment of the markets we operate in, can have unexpected repercussions on our businesses. Proactive portfolio management is critical to anticipate and protect against such challenges. Continuous investment in technology is required to ensure the scalability and integrity of our systems, which in turn ensures the sound structural support of our risk management activities. We achieve consistency of infrastructure and reporting across our entities by setting technology standards centrally.
Best-in-class Corporate Governance
We bring a best-in-class corporate governance framework that aims to safeguard the interests of all stakeholders at each of our entities, oftentimes in less mature and transparent markets. This starts from a sound and balanced board composition to robust and independent oversight committees as well as ethical and responsible management. Clear accountability, transparency, accurate and timely disclosures are prerequisites for each entity.
Strong Risk Culture
A strong risk culture starting from the board to senior management and down to all staff ensures that everyone does what is right and there is clear accountability and ownership of specific risk areas within all FFH entities.
Robust Risk Architecture
All entities of FFH adopt a robust risk architecture to ensure independence of risk management, compliance and audit functions. Each FFH entity conducts quarterly country risk assessments to evaluate prevailing and forward looking operating conditions. The three lines of defense – front line, compliance/assurance and internal audit – are strongly embedded in each entity to minimise operational losses.
Comprehensive Risk Standards
To manage risks, all FFH entities are guided by comprehensive risk standards - Governance, Risk Management and Control (GRMC) standards – which sets out global best practices. We also work with our entities to set market risk limits, internal liquidity limits and establish liquidity contingency plans.
Common Framework
Having a common framework for corporate governance and risk management ensures that all FFH entities are well equipped to deal with business challenges and adopt the industry’s best practices. A strong risk and compliance culture within each entity allows us to maintain the highest standards of compliance with laws, regulations and established internal policies.