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Datasonic Group Berhad
(Company No. 809759-X)
51
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
(Continued)
Financial Authority Limits
The Board has approved the Financial Authority Limits (“FAL”) which defines the approving authority with
its approving limits delegated to the Executive Directors and Management of the Group to conform to
the Group’s strategies and risk appetite without stifling with the Management’s decisions that made the
Group’s operations successful.
Group Project Planning and Management Office
As part of the key strategic initiatives, the Group has established the Project Planning and Management
Office (“PPMO”) in April 2015 as the focal contact between theManagement Committee and the respective
Project Directors and Project Managers. The main objectives of the PPMO during the financial year are:-
i)
As the focal point to lead all project management offices and project divisions in project management,
so as to be aligned with the strategic initiatives of the Group;
ii)
To initiate the Group’s Enterprise Risk Management activities, including finding resolution to minimise
or mitigate the key risks identified;
iii) To plan and mobilize resources within the Group, thereby ensuring that all project deliverables are
executed within the committed/ contractual timelines, budgeted costs without compromising the
high standard of requirements and quality expectations of the clients; and
iv) To provide management with a “bird’s eye view” of what is happening across the project lifecycle
(from pre-sales to inception and thereafter to closure/ completion) through periodical monitoring
and reporting measures.
The PPMO Teamhas been working closely with the respective Project Directors and Project Managers as well
as the Management Team to support the execution of the necessary activities, processes and procedures
to enable the project teams to achieve their short, medium, and long-term objectives. All significant issues
encountered in project management will be noted and resolved in the spirit of collaboration with a view
to achieve sustainable long-term solution. Periodic PPMOmeetings chaired by the PPMOChairman is held
with all Project Directors and Project Managers to openly discuss the actual progress and performance of
projects and portfolios registered with the PPMO Team.
Project Level Budgeting Process
A project-level budgeting process is implemented as part of the key initiatives of cost optimisation efforts
which requires all Project Directors and Project Managers of the awarded projects and key potential
projects to prepare Project Budgets to monitor and control the expenditures incurred throughout the
project period. The Project Budgets are reviewed and concurred by the Chief Operating Officer and
Chief Financial Officer and approved by the respective Executive Directors and Executive Committee.
The Project Directors and Project Managers are made responsible to ensure the expenditures incurred for
the project are within the budgeted amounts and satisfactory project financial performance throughout
the project period.
Code of Conduct and Ethics for Directors
The Code of Conduct and Ethics for Directors describe the standards of conduct and ethical behaviour for
Directors in the performance and exercise of their duties and responsibilities as Directors of the Company or
when representing the Company. The Group strongly believes that the appropriate standards of conduct
and ethical behaviour are fundamental to the preservation of the Company’s reputation and the success
of its operations and to the exercise of their duties and responsibilities as Directors of the Company.