Frontken Berhad Annual Report 2019

36 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2019 Statement On Risk Management And Internal Control (cont’d) BOARD’S COMMENTS ON THE ADEQUACY AND OPERATING EFFECTIVENESS OF THE GROUP’S RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM (cont’d) The Board is of the view that the system of risk management and internal control, in place for the financial year under review and up to the date of approval of this Statement for inclusion in the Annual Report of the Company, is sound and sufficient to safeguard shareholders’ investment and the Group’s assets. Whilst the Board is of the view that there were no material losses incurred during the financial year as a result of weaknesses in the risk management and internal control system, the Board believes that this system must continuously evolve to meet the changing business landscape and environment the Group operates in. Therefore, the Board continues to put in place action plans, as deemed appropriate, to strengthen the system of risk management and internal control from time to time towards achieving the Group’s corporate objectives. ASSURANCE BY THE GROUP CHIEF EXECUTIVE OFFICER AND GROUP CHIEF FINANCIAL OFFICER ON THE ADEQUACY AND OPERATING EFFECTIVENESS OF THE RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM The Board has received assurance in writing from the Group Chief Executive Officer and Group Chief Financial Officer stating that the Group’s risk management and internal control system operated adequately and effectively, in all material aspects, for the financial year under review and up to the date of this Statement. REVIEW OF STATEMENT BY THE EXTERNAL AUDITORS Pursuant to Paragraph 15.23 of Bursa Securities’ Main Market Listing Requirements, the external auditors have reviewed this Statement for inclusion in the Company’s Annual Report for the financial year ended 31 December 2019. The external auditors have reported to the Board that, based on their review procedures performed and evidence obtained, nothing has come to their attention that caused them to believe that this Statement intended to be included in the Annual Report is not prepared, in all material respects, in accordance with the disclosures required by Paragraphs 41 and 42 of the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issues to be set out, nor is the Statement factually inaccurate. This Statement is made in accordance with the resolution of the Board of Directors dated 12 May 2020.