1. RISK MANAGEMENT POLICY
GROUP LEGAL SERVICES DEPARTMENT
LAND & GENERAL BERHAD
A. Risk Management Policy
1. Providing legal services to the various departments and subsidiaries so as
adherence to the various legislation in Malaysia are met with. This are not
limited to the Housing Developers Act but encompasses the Company’s Act,
Securities Industries Act and the Listing Requirements of the Kuala Lumpur
Stock Exchange.
2. Assisting the Corporate Services Department in obtaining approval from
relevant authorities in the corporate exercises undertaken by the Group.
3. Render legal advice to the in house departments by undertaking research.
To provide legal advice and services within the Group. To minimise the risks of legal
action being taken against the Group and that all legal action concerning the Group are
monitored.

2. B. Factors Affecting Risk Management
Internal factors and measures to mitigate risks
Internal factors Measures to mitigate risks
•
1. Ambiguous instructions To confirm the instructions (where
necessary received so that a clear
understanding of the task at hand is
obtained before proceeding with the matter
at hand.
• To check with the ‘process owner’ that the
instructions have been carried out.
•
2. Non Adherence/compliance with To advice the relevant subsidiaries and
the Companies Act, the KLSE LR, the departments to comply with the relevant
Securities Industry Act, Housing laws and relevant authorities’ guidelines
Development Act and Local Authorities and regulations.
regulations and procedures.
• Upgrading of legal knowledge by attending
workshops and seminars.
•
1. Inadequate facilities for record Ensure that there are adequate facilities for
keeping. document keeping and record keeping.
2. Inherent risks with the PC with access • Proper security protocol is maintained for
to the Internet associated with hackers. the PC.
C. External factors and measures to mitigate risks
External factors Measures to mitigate risk
1. Inadequate and poor delivery of legal • To achieve sound advice, the fees
opinion(s) and agreement(s) from payable should be adequate, taking into
external solicitors. consideration the level of expertise and
experience of the solicitors concerned.
•
2. Changes in policies and legislation by Monitor government policy through the
the Government. mass media.
• Participate in meetings and briefing
sessions organised by relevant authorities
• Maintain good rapport with regulatory

3. agencies.
D. Measures to Mitigate Risks
Internal factors
1. Ambiguous instructions or facts received.
In order to effectively represent the Group, the personnel tasked with the matter is to
confirm the instructions received so that a clear understanding of the task at hand is
obtained before proceeding with the matter at hand and to check with the ‘process
owner’ that the instructions have been carried out.
In order for the Department to prepare the necessary documents and agreements, clear
and unambiguous instructions on the matter should be given.
2. Non Adherence/compliance with the Companies Act, the KLSE LR, the Securities
Industry Act, Housing Development Act and Local Authorities regulations and
procedures.
In order to mitigate this, proper briefing on the legislation involved should be
undertaken. Towards this end, the Legal Department liaises with external solicitors on
the latest updates on the law which would be made known to the Chief Operating
Officers. Another method employed is continuous upgrading of legal knowledge by
attending workshops and seminars.
3. Inadequate facilities for record keeping
Facilities for record keeping are important support service for the Group. This also
serves as a historical record of transactions undertaken by the Group. At present there
are adequate facilities for storage.
4. Inherent risks with the PC with access to the Internet associated with hackers.
On the PC’s this is done in conjunction with the Information and Communication
Technology Department. There are basically four steps to be taken to ensure the
security of the computer system. They include and are not limited to maintaining the
Firewall/Anti virus systems, controlling and monitoring the Internet/web applications
and the Intranet systems. Duplicating the files on to floppy disks regularly and
maintaining secrecy of the passwords.
External factors
1. Inadequate and poor delivery of legal opinion(s) and agreement(s) from external
solicitors.
To obtain sound advice, the fees payable should be adequate, taking into consideration
the level of expertise and experience of the solicitors concerned. It should be noted that

4. the Legal personnel in the Group relies on outside solicitors for various advises and
opinions. This would be in relation to the corporate exercises undertaken by the Group.
This can be mitigated by engaging senior counsels/solicitors; however in so engaging
this would mean that the legal fees charged by the senior counsels/solicitors would be
on a higher side due to their expertise and experiences.
2. Changes in policies and legislation by the Government.
Monitor government policy through the mass media. Participate in meetings and
briefing sessions organised by relevant authorities and maintaining good rapport with
the regulatory agencies.