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Datasonic Group Berhad
(Company No. 809759-X)
53
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
(Continued)
Development of Risk Management Activities Subsequent to the Adoption of Risk Management Framework
The Executive Committee has appointed Risk Facilitators in February 2016. The Risk Facilitators undertook to
assist, identify and gather significant risks encountered by the Group from the Risk Owners and thereafter
report accordingly to the Executive Committee which consist of the Managing Director and Deputy
Managing Director. The significant risks together with the attributable controls and action plans would
subsequently be presented by the Executive Committee to the Board for its notation on yearly basis in line
with practices as prescribed in the Malaysian Code on Corporate Governance 2012. The Risk Facilitators
have also been tasked to create continuous awareness and provide continuous training to the Risk Owners
to ensure systematic and effective implementation of risk management processes and procedures in
accordance with the approved Risk Management Framework and Risk Management SOP.
The SOP governing risk management processes and reporting procedures were approved by the Executive
Committee in February 2016. These SOPs are to support and outline the policies and procedures for the
implementation of the ERM Framework.
Although there is no Risk Management Committee and Risk Management Department established in the
Group, formal risk management reporting exercise has commenced in the third quarter of the financial
year ended 31 March 2016. The respective risk owners are required to report significant risks with its risk
mitigation strategies and controls in the Management Committee meetings which are held on a quarterly
basis and chaired by the Managing Director.
Even though the formal risk management activities and reporting carried out in the Group are recently
implemented and continuously being improved, the Executive Directors and Management asserts that
there have been on-going processes of risk management throughout the financial year and the key risks
involved were in fact reviewed by the Executive Committee and Management in the course of managing
the business activities.
Information and Communication
Formal Reporting on Key Operational Matters by the Managing Director to the Board
Key operational activities, financial performance analyses, statistics and key risks that affect the operational
activities are formally reported by the Managing Director at the Board meetings. This is to ensure that the
Board receives continuous updates on the business operations and makes informed and timely decisions
on policies in relation to the Group’s operations, where necessary.
Whistleblowing Policies and Procedures
Whistleblowing Policies and Procedures established by the Board applies to the Directors and employees
of the Group as part of Group’s commitment to promote and maintain high standards of transparency,
accountability and ethics in the conduct of its business and operations, there is an established process for
reporting anyone found to be abusing or circumventing processes and controls of the Group. All staff are
accorded the opportunity to report via the whistle-blowing mechanism with the assurance that the report
will be dealt with confidentially and that the reporter’s identity will be protected.
There is no report received throughout the financial year ended 31 March 2016 that warranted the
implementation of whistleblowing exercise.
Monitoring
Reviews by the Audit Committee
Reviews carried out by the Audit Committee on the adequacy and effectiveness of the internal control
systems concerning operational issues reported by the internal and external auditors and attributable
actions taken by Management in respect of the findings to provide assurance that control procedures
are in place and are being followed as intended.
Internal control and risk-related matters which warranted the attention of the Board were conveyed by
the Audit Committee to the Board for its deliberation and approval.