Risk Management & Internal Control The Board acknowledges its overall responsibility for continuous maintenance of a sound risk management framework and internal control to safeguard shareholders’ investment and the Group’s assets. Over and above the quarterly review by the Board Audit Committee on risk events and mitigation measures at the enterprise level, the Board reviewed the status of risk management activities and the updated Risk Register. The Board also ensures that all relevant project and investment risks, including the mitigation measures, are deliberated when making such decisions. Such Project Risk Assessments encompass, amongst others, project execution risk, contract management risk, counter-party risk, operations risk, geopolitical risk, and asset integrity risk. In relation to reviewing the adequacy and the integrity of the Company’s internal control systems (conducted via the Board Audit Committee), the Board reviewed the reports on Related Party Transactions, Conflict of Interest oversight and certain improvements to internal controls as highlighted by the Group Internal Audit. The Company’s Risk Management & Internal Control practice is further elaborated in the Statement on Risk Management and Internal Control in pages 138 to 145 of this Annual Report. Ethics and Compliance The Company observes its own Code of Conduct and Business Ethics (“CoBE”), including the Whistle-blowing Policy and the No Gift Policy. The CoBE is applicable to the Company, Directors, employees and third parties performing works or services for and on behalf of the Company. It governs the desired standard of behaviour and ethical conducts expected from each individual to whom the CoBE applies. The MISC Anti-Bribery and Corruption Manual also serves to guide the Company in relation to such matters. During the year under review, the Board endorsed the MISC Compliance and Ethics Programme, which outlines the policy, action plans and deliverables to ultimately create a culture within the Company that embodies ethical conduct and commitment to integrity in all business dealings. The MISC Group Policy Statement on Anti-Bribery and Corruption, which is made as part of the MISC Board Charter, was also adopted. As part of the Programme, the Company has, amongst others, rolled out Operational Guidelines on Third Party Due Diligence as part of risk assessment enhancement and improved its Compliance Unit resources, and shall develop a comprehensive training programme on antibribery and corruption for all employees, Management and the Board. Compliance monitoring measures have also been enhanced with the establishment of the Gift Register, the Whistle-Blowing Register and the Conflict of Interest register for all employees. The Whistleblowing Policy outlines the systems and processes, including the support of a secretariat and a dedicated CoBE hotline, for employees to utilise for purposes of making reports of non-compliance with the CoBE on a strictly confidential basis. In line with the highest standards of integrity expected of the Company’s employees, the Board also reviews Whistleblowing reports submitted to it. The Whistle-blowing Secretariat and Whistle-blowing Committee are operationalised by the Compliance Unit of Legal, Corporate Secretarial & Compliance Department of MISC. Health, Safety and Environment (“HSE”) The Board is committed to giving attention to strategies relating to HSE and compliance with the relevant laws, rules and regulations. The Board also places emphasis on the formulation of strategies to promote sustainable development in areas covering economics, environment and social development. The detailed statement on HSE is provided in the Sustainability Report in pages 117 to 121 of this Annual Report. Corporate Governance 125
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