Dagang NeXchange Berhad Annual Report 2019

annual report 2019 73 Delegation of responsibilities and accountability is also formalised through Discretionary Authority Limit (“DAL”). The DAL is another key control document that acts as the Group’s governance framework as the Board formally delegates functions and powers to the Management with specific oversight and supervisory functions. Formal limits of authority delegation are assigned to each approving authority within the Group and implemented for planning, executing, controlling and monitoring business operations. The limits of authority are regularly reviewed and enhanced to reflect changes in accountability and Group’s risk appetite. • Budgeting Forecasting and Performance Management A comprehensive budgeting and forecasting system are in place where each business units is responsible in carrying out a thorough forecasting and analysis as part of the formation of the business units and collectively derives the Group’s annual operating and five (5) years period strategic plan. The plans are reviewed by the Management team prior to submission to the Board for approval. The Group’s business strategic directions in terms of financial and major initiatives are then further reflected in the respective corporate, subsidiaries and support unit Key Performance Indicators (KPIs) with a detailed balanced scorecards target. Performance achievements are reviewed by the Management team against the approved and targeted results on a monthly basis allowing timely responses and corrective actions to be taken in consideration of the macroeconomic sentiments and associated business risk. Similar reports and results are also reviewed by the Board on quarterly basis. • Role of Auditors For the year under review, the Board and Audit Committee have received independent and objective assurance from both internal and external auditors of the Group. The internal auditor helps the Group by carrying a systematic, disciplined approach to evaluate and improve the internal controls, corporate governance and risk management. Areas for improvement identified during the course of audit are brought to the attention of the Board and Management are followed through the rectification progress accordingly. External auditors conduct statutory audit on financial statements. The Audit Committee reviews the Group’s quarterly financial results and subsequently reports to the Board for deliberation and approval, prior to submission to Bursa Securities for release to shareholders and stakeholders. • Communication and Feedback The Group recognises the importance of timely dissemination of information and has been transparent and accountable to shareholders, stakeholders and general public. The Board is committed to ensure that the shareholders and investors are well informed of major developments of the Group through various disclosures and announcement to Bursa Securities including quarterly results, analyst briefings, press releases to media and online investor relations on the company’s website. All feedbacks are regularly collated and analysed with appropriate follow up action by Media and Investor Relations and Customer Service Engagement Unit, whom which act as a point of contact to respond on behalf of the Group. MANAGEMENT COMMITMENT The Board received assurance from the Executive Deputy Chairman and Chief Financial Officer that to the best of their knowledge, the Group’s risk management and internal control system is sound and effective, providing reasonable assurance that the structure and operation of controls are appropriate for the Group’s operations. The Board will continue to monitor all major risks affecting the Group and take necessary measures to mitigate them and continue to enhance the adequacy and effectiveness of the risk management and internal control systems of the Group. REVIEW OF STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL BY EXTERNAL AUDITORS In accordance with Paragraph 15.23 of the MMLR, the external auditors have reviewed this Statement on Risk Management and Internal Control for inclusion in this Annual Report and had reported to the Board that nothing has come to their attention that causes them to believe that the statement is inconsistent with their understanding of the process adopted by the Board in reviewing the adequacy and integrity of the system of internal control. This statement is made in accordance with a resolution of the Board dated 25 February 2020. CORPORATE ACCOUNTABILITY