Content2011 - PETRONAS Gas Berhad

Health, Safety and Environment (HSE) Risk
In carrying out all business activities, the Company adopts on the
PETRONAS HSE Management System (HSEMS) to manage HSE risk and
ensure that operations are in tandem with HSE regulatory requirements.
The HSEMS process ensures that HSE risk within the business is managed
effectively.
A Health, Safety and Environment (HSE) Tier 3 Assurance for PGB was
conducted from 16 August to 1 October 2010. The Assurance focused
on the business activities conducted throughout PGB Divisions and the
assurance concluded that HSE risk control measures are generally in
place across the business activities.
Finance Risk
Pursuant to the Board’s approval on the adoption of the PETRONAS
Corporate Financial Policy (CFP), PGB has developed the supporting
guidelines on liquidity management, fi nancing, banking, asset liability
management, foreign exchange management and Integrated Financial
Risk Management. The establishment of the CFP supporting guidelines
helps the Company to manage its fi nance risk exposures that includes
counterparty risk, liquidity risk, foreign exchange risk and interest rate
risk.
The Company is represented in the Finance Risk Council (FRC), which
reviews and monitors fi nance risk exposures at PETRONAS Group level
and makes appropriate recommendations to companies within the
Group.
rISk InItIAtIveS
123 annual report 2011
The Company continues to enhance risk management awareness
and capability building across the Company through various risk
communication sessions such as risk forum and engagement sessions.
The annual PGB Risk Management Forum was conducted as part of
the PGB Sharing Forum to promote innovation and risk management
culture. Papers addressing risk management in innovative initiatives
were shared by PGB personnel as well as invited external speakers. The
forum was attended by personnel across various functions within the
Company.
The Company benefi ts from being part of the PETRONAS Group, which
has an established Risk Management Committee that primarily provides
guidance and recommends strategies and policies. The committee also
coordinates groupwide risk management awareness and capability
building, monitors risk exposures and plans responses to potential
major risk events for the PETRONAS Group.
MOvInG fOrWArd
The Company continues to incorporate risk management within its
business processes and activities to ensure that risks are being mitigated
through effective risk management practices. In light of the Company’s
business direction for growth, the Company will continue to ensure that
the risks from new business ventures are assessed and the risk profi le as
well as the risk mitigations are reported as part of the business proposal
paper to PGB Management.
The Company will continue to conduct periodic reviews of its business
processes and activities as well as provide risk management training
for its employees to ensure full understanding and commitment on
effective risk management practices and contribute to business
excellence for the Company.
In addition, the Company will continue with its BCP drill exercises at the
Company and Division levels to enhance its readiness to address disaster
or crisis situations and its resilience to effectively resume operations.