The Board Charter

Board Committee and its Members

Corporate Social Responsibility

In line with FEU’s (the University) mission of nurturing a service-oriented and environment-conscious community, an integrated outreach program responsive to the needs of the undeserved population becomes part of a long commitment of the University.

The University classified the major community extension services programs under three categories: The Blossom Month; Sustaining the Four Flagship Programs; and Innovations.

Enterprise Risk Management

Far Eastern University, Inc., (FEU) considers risk management fundamental to good management practice and an important aspect of corporate governance. It recognizes that the effective management of risk contributes significantly to the achievement of the university’s strategic and operational goals and objectives.

FEU Risk Management framework consist of the following process:

• Establish the context
• Risk identification
• Risk analysis
• Risk evaluation and response
• Monitoring and review
• Communication and consultation

The Board of Trustees, through its Risk Management Committee, has oversight responsibility over company-wide risk management policies and practices.

Policy Principles are as follows:

1. Risk management shall be an integral part of the decision-making process and routine management practice of the university as well as of strategic and operational planning activities at all levels throughout the university.
2. Risk management shall be conducted on new ventures and activities, including projects, processes, systems, and commercial activities to ensure that these are aligned with the objectives and goals of the university.
3. The university shall specify and assume a degree of risk commensurate with the potential reward within defined tolerances for risk appetite agreed by management for key areas.
4. A Risk Management Program shall be adopted, and its effective implementation university-wide shall be overseen by the Chief Risk Officer (CRO).
5. The Risk Management Program shall be user friendly and add value to business processes, and conscious effort shall be taken to keep processes as simple as possible. Top-down and bottom-up assessments shall be carried out to produce a comprehensive picture of risks across all university activities.
6. The Risk Management Program shall ensure that all personnel, particularly institute deans and (academic and non-academic) department heads, are provided with adequate guidance and training on the principles of risk management and their risk-management responsibilities. Risk Management Policy Reference Guide shall be the ISO 3100:2009 Risk Management Standards Page 2 of 6
7. The university shall regularly review and monitor the implementation and effectiveness of the risk management process, including the development of an appropriate risk management culture across the university.
8. All types of risks shall be considered and classified into broad categories. A risk register shall be formulated for the corporate level as well as for institutes and academic and non-academic departments. The risk registers shall be maintained by the unit managing the risk.
9. A formal risk review following the risk management framework shall be undertaken annually or as often as is deemed necessary. For high risk-score events, reviews shall be done on a more frequent basis and track control improvements. In the case of projects, a risk review shall be carried out at each project team meeting; each risk shall be considered to determine its relevance and applicability to the project and to ensure that the risk register is complete and exhaustive. Institute and department management groups are also minded to allocate time during regular meetings for considering new and emerging risks.

Internal Audit

The mission of Internal Audit is to deliver an independent assurance and consulting services that will help FEU Group minimize risks, improve process quality and enhance operational effectiveness.

The Internal Audit Department reports functionally to the Audit Committee of the Board of Trustees and administratively to the Chairman of the Board of Trustees.

Annually, Internal Audit prepares an audit plan which is approved by the Audit Committee. The Internal Audit conducts its activities based on guidance from The Institute of Internal Auditors’ International Professional Practices Framework including the Code of Ethics. All internal auditors apply and uphold the following principles under the Code of Ethics

• Integrity
• Objectivity
• Confidentiality
• Competency

Company Policies