Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 37 This Statement on Risk Management and Internal Control is made in accordance with the paragraph 15.26(b) of Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) and the Malaysian Code on Corporate Governance 2017 (“the Code”), which requires Malaysian public listed companies to maintain a sound system of risk management and internal control to safeguard shareholders’ investment and company’s assets. Board responsibility The Board recognises and acknowledges that a sound risk management framework and internal control system play an important role in good corporate governance and efficient work processes. The system of internal control covers not only financial controls but also non-financial controls relating to the operational management, compliance controls and riskmanagement. The internal control system is designed to manage and mitigate the effects rather than to eliminate the risks. As such, the internal control system can only provide reasonable and not absolute assurance against material misstatement of management and financial information or against loss or fraud. Risk Management Framework As an integral part of the system of risk management and internal control, there is an ongoing group wide risk management process for identifying, evaluating and managing the significant risks that may affect the achievement of the Group’s business objective. Risk management is firmly embedded in the Group’s management systems and its policy is reviewed annually to ensure it is relevant and adequate to manage the Group’s risks, which continue to evolve along with the changing of business environment. The Board strongly believes that prudent risk management is vital for business sustainability and the progressive enhancement of the shareholders’ value. It is the responsibility of key management, head of subsidiary companies and heads of departments to identify, evaluate and manage risks faced by the Group on an ongoing basis with defined parameters. The deliberation of risks and related mitigating responses are carried out at regular management meetings of the Group. Significant risks are conveyed to the Board at the quarterly scheduled meetings. The Board, working together with the Management, in the process of continuing to identify, evaluate and manage significant risks for the financial year under review and up to the date of approval of this statement. The Board shall continue to evaluate the existing risk management practices, and where appropriate and necessary, revise such practices accordingly. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL