MSM Malaysia Holdings Berhad Annual Report 2021

Statement on Risk Management and Internal Control This statement is made pursuant to: Rule 15.26(b) of Bursa Malaysia Securities Berhad Main Market Listing Requirements, Malaysian Code on Corporate Governance 2021 and in accordance with the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers. RESPONSIBILITY AND ACCOUNTABILITY The Board is committed in maintaining and continuously improving the MSM Group and its subsidiaries system of risk management as well as internal controls and is pleased to promote this through the following statement for the group during the year under review. The Board acknowledges the importance of a sound risk management system and internal control practices for good corporate governance with the objective of safeguarding shareholders’ investments and the Group’s assets. The Board affirms its overall responsibility for the Group and has undertaken a review on the adequacy and effectiveness of those systems and compliance with relevant laws and regulations. In view of the inherent limitations in any system of internal controls, this system is designed to manage the risk to as low as reasonably practicable in achieving the corporate objectives. The system can only provide with reasonableness, nevertheless it is short of absolute assurance against material misstatement or losses or the occurrence of unforeseeable circumstances. Audit, Governance and Risk Committee Audit, Governance and Risk Committee (AGRC) at Board level supports the Board in its risk management and internal control responsibilities. AGRC is tasked with: i. overseeing risk management and governance aspects of the Group; and ii. assessing the risks and control environment and overseeing financial reporting, including the external and internal audit. RISK MANAGEMENT Risk Management is regarded by the Board to be an integral part of the Group’s organisational processes, with the objective of maintaining sound system and ensuring its continuing adequacy and integrity. Risk Management is firmly embedded in the Group’s Risk Management Framework. The Management’s key role is to identify significant risks, evaluate the risk profile and drive risk mitigation strategies on a regular basis. The management team is also responsible for risk management within their functional areas and to ensure that risk management is embedded in their day-to-day business processes. SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 251