collated and analysed into a consolidated report. The consolidated reports are submitted and presented to the MAC for review, comments and further actions. The reports are then presented to BAC with the deliberations and decisions shared. 2. The Corporate Health, Safety and Environment (“CHSE”) Division drives various sustainable HSE initiatives and defines the framework that exemplifies CHSE’s effort to continuously meet legal compliance as a minimum. CHSE also drives strategies and monitors performance to ensure HSE risks are managed to as low as reasonably practicable. 3. The Corporate Security Division (“CSD”) maintains a clear policy, procedures and framework with the aim to continuously monitor conformance to established industry security standards as well as international security standards applicable under the relevant codes. GROUP INTERNAL AUDIT MISC Group Internal Audit (“GIA”) supports the BAC in their responsibilities by providing feedback as an independent assurance body on the adequacy of risk management, governance and the efficiency and effectiveness of the internal control system. The GIA processes and activities are guided by the approved Internal Audit Charter and aligned with internal audit industry standards (i.e. The International Professional Prac t i ces Framewor k ( “ I PPF” ) and St a t ement of Responsibilities issued by the Institute of the Internal Auditors (“IIA”)). The GIA adopted the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) framework; a comprehensive, structured and widely used auditing approach, in conducting the audit works. Based on COSO framework, all aspects of controls are given emphasis in order to ensure risk is well managed and mitigated. The GIA, through its Risk Based Internal Audit (“RBIA”) methodology, makes reference to the approved risk register in identifying areas to be audited and more focus are given on areas with higher risk exposure. OTHER MATTERS With regard to the associated companies and jointly controlled entities, the Board does not regularly review the internal control system as the Board has no direct control over their operations. Nevertheless, MISC’s interests in the associated companies and jointly controlled entities are served via representations on the boards as well as review of management accounts and inquiries thereof. AFFIRMATION BY THE BOARD The Board has received assurance from the President/CEO and Vice President, Finance that the risk management and internal control systems of the Company and its subsidiaries for the year under review up to the date of approval of the statement are, in all material aspects, operating adequately and effectively. There were no material losses incurred during the financial year under review as a result of weaknesses of internal control. Management would continue to take measures to strengthen MISC’s control environment. This statement is made in accordance with the resolution of the Board of Directors dated 24 February 2015. MISC BERHAD - Annual Report 2014 p 130 STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL
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