Datasonic Group Berhad Annual Report 2020

DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 77 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL INTRODUCTION The Board of Directors (“the Board”) of Datasonic Group Berhad (“the Group”) is pleased to present the Statement on Risk Management and Internal Control of the Group which outlines the main features of the Group’s risk management and internal control system for the financial year ended 31 March 2020 pursuant to Paragraph 15.26(b) of the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Malaysia”), Malaysian Code of Corporate Governance (“MCCG 2017”) and the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers (“Guidelines”). As the Group operates in a dynamic and cyclical business environment in which risk management and internal control system must be responsive to support its business objectives, the Board and Management uphold their ongoing commitment to embed and improve the risk management and internal control system into the culture, processes and structure of the Group. The Group continue its efforts to integrate the risk management processes and internal controls into the management process and business activities of the Group. Risks are managed by ensuring adequate controls and mitigation plans are in place and ensuring improvements are made as and when the needs arises. The efforts continued to evolve on a progressive basis for the financial year ended 31 March 2020 and up to date of approval of this Statement for inclusion into the Annual Report. RESPONSIBILITY Board of Directors The Board recognises the importance of sound risk management and internal control system to ensure the reliability and integrity of financial and operational information, effectiveness and efficiency of operations, safeguarding of assets and compliance with laws, regulations, policies, procedures and contracts. Hence, the Board with the assurance from the Executive Directors and Management affirms its overall responsibilities for the Group’s risk management and internal control system. The oversight of these critical areas is carried out by the Audit Committee and Risk Management Committee which are empowered by their respective terms of reference to provide oversight and perform regular reviews on the risk management and internal control systems to meet the Group’s objectives and for continuous improvement thereof. The Board acknowledges the limitations that are inherent in any risk management and internal control system. As such the systems designed are meant to manage and minimise the extent and severity of the risks, rather than completely eliminate the risks of failure of achieving the Group’s objectives and strategies. Consequently, the Board recognises that a sound internal control system provides reasonable but not absolute assurance that the Group will not be hindered in achieving its business objectives in the ordinary course of business. Executive Directors and Management Executive Directors and Management are accountable to the Board and responsible for implementing the processes of identifying, evaluating, monitoring and reporting of risks and the effectiveness of internal control systems, taking appropriate and timely corrective actions as required. Regular reports on risks identified and actions taken to mitigate and/or minimise such risks and gaps in the internal control systems, if any, are presented to the Audit Committee and Risk Management Committee and ultimately to the Board. The Executive Directors and Management have assured the Board that the Group’s risk management and internal control systems are operating adequately and effectively in all material aspects, based on the risk management framework and internal control systems adopted by the Group.