55 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 GROUP RISK MANAGEMENT SYSTEM (Cont’d) 5. COVID-19 Pandemic Risk The Group operated under its Business Continuity mode and had activated the GHL Disease Outbreak Framework to mitigate and minimize the impact of risks associated with the pandemic on its business and operations. In order to mitigate this risk, the Group has undertaken the following measures: - • Assessed the impact of Covid-19 pandemic on the Group’s business operations and put in place the relevant Standard Operating Procedures across all business activities; • The Group had implemented various safety and health measures such as work-from-home, temperature screening, restricted visitors’ access to the office premises, providing sanitisers at strategic locations and staff communication on health awareness. Given the fluidity of the situation, the Group will continuously monitor the impact of Covid-19 and take appropriate and timely measures to minimise the impact of the outbreak on the Group’s operations. 6. ESG (Environmental, Social & Governance) Sustainability Risks The Board has approved four policies last year specifically related to Environmental and Social aspects of the ESG Risk Management which are the (1) Climate Change & Risk Policy, (2) Labour & Human Rights Policy, (3) Gender Diversity Policy and the (4) Senior Management Remuneration Policy and Procedure. Further to the said four policies, the Risk Management principles of the Group is also to be guided by the Governance perspective of ESG risk with the five (5) other main policies, i.e.: Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Policy, Anti-Bribery and Corruption Policy, Whistleblowing Policy and the Code of Ethics and Conduct. With all these nine (9) policies in place, the Group Risk together with the Group Legal, Compliance and Sustainability continues to ensure the ESG risks as enshrines in the said Policy are assess and comply by the Group accordingly to ensure that the Group are not expose to the said ESG risks. KEY INTERNAL CONTROL PROCESSES The following areas of governance contains clearly defined corporate values, code of business ethics and conduct as well as comprehensive policies and procedures to assist Management in ensuring that a sound system of internal control is maintained in the Group. 1. Authority and Responsibility a) Board Committees Board Committees are established and operate under clearly defined Terms of Reference (“TOR”) to provide oversight function and ascertain the adequacy of the internal control framework in the Group. TOR is reviewed periodically to objectively and independently focus on certain responsibilities delegated by the Board. b) Delegation of Authority The Delegation of Authority clearly defines the authority and authorisation limits of the Management in all aspects of the Company’s key business decisions, provides guidance on the division of responsibilities, and is periodically reviewed to reflect and be in line with the growth of the business, operational and organizational environment. 2. Monitoring and Reporting Monthly management meetings are led by the respective country heads for various lines of operations and business units, on key business performance, operating statistics, and regular matters. This enables effective monitoring of significant variances and deviation from standard operating procedures and budget. The Board is also kept appraised of the Company’s performance during the scheduled board meetings with the Company’s business performance and plans being reviewed and deliberated. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL CONT’D
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