The Whistleblowing Policy provides an avenue for all employees of MISC and members of the public to report any improper conduct within MISC in breach of the CoBE. The whistleblowing system includes a dedicated Hotline for employees to make reports in a confidential manner, and oversight of the processes by a Whistleblowing Committee. Where necessary, whistleblowing reports are also escalated to the Board. From the business angle, the Compliance Unit also supports all the necessary ethical due diligence inquiries to ensure high standards of integrity are upheld by the Company’s joint venture partners, vendors and/or persons conducting work on behalf of MISC. 11. During the year under review, MISC established its Corporate Disclosure Policy (“CDP”) and Corporate Disclosure Guidelines (“CDG”). The CDP guides the Board, Management and employees when communicating and making disclosure of information to external parties such as Bursa Securities, investment community, media, government authorities and other relevant stakeholders. It also sets out the parameters to enable timely, adequate and accurate disclosure of such information. The CDG, which is an internal document, provides more definitive guidelines for communication and disclosure of information in the above areas. 12. The Company keeps a register on conflict of interest or potential conflict of interest situation for company directors in the Group which is reviewed on an annual basis. Results of the review and any new recommendations for improvement are tabled to the BAC and Board for information and further action, where necessary. ASSURANCE FUNCTIONS The Group has in place the following assurance functions to review the effectiveness of internal control systems and processes:- 1. The Ship Management Audit (“SMA”), which reports to the MC and the BAC, performs independent scheduled inspections on the Group’s vessels and floating facilities. The objectives of the inspections are to verify, evaluate and review the Group’s operational activities to ensure the vessels’ and floating facilities’ operational integrity and reliability are maintained at all times, consistent with international regulations and internal policies. MISC Group vessels are subjected to stringent audits, vetting and inspections to meet various regulatory and commercial requirements. These include vetting by oil majors, audits by the Malaysian Marine Department and ship classification societies to maintain international safety and security management certification under the relevant codes. In addition, MISC is also subjected to periodic management reviews by its customers’ risk management units. The Ship Management Audit Division submits its findings and recommendations on corrective actions of each ship and floating facilities inspected to the Fleet Management Services (“FMS”) Division and Offshore Business Unit (“OBU”) respectively. The monitoring and follow-up on the status of the corrective actions are maintained on a monthly basis until closure. On a six-monthly as well as annual basis, findings on each ship inspected are collated and analysed into a consolidated report. The consolidated reports are submitted and presented to the MC 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. MISC BERHAD • Annual Report 2016 144 Statement on risk management & internal control
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