Excel Force MSC Berhad Annual Report 2015

E X C E L F O R C E M S C B E R H A D • A N N U A L R E P O R T 2 0 1 5 28 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL Introduction The Board of Directors (“the Board”) of Excel Force MSC Berhad (“the Company”) is pleased to present the Statement on Risk Management and Internal Control which outlines the nature and scope of risk management and the internal control systems of Excel Force MSC Berhad and its subsidiaries (“the Group”) for the financial year ended 31 December 2015 pursuant to Paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“MMLR”), Malaysian Code on Corporate Governance 2012 (“MCCG 2012”) and “Statement on Internal Control and Risk Management: Guidelines for Directors of Listed Issuers”. Board Responsibility The Board affirms its overall responsibility for maintaining the Group’s systems of internal controls and risk management to safeguard investment, the interest of customers, regulators, employees, and the Group’s assets. The Board further recognizes its responsibility in reviewing the adequacy and integrity of these systems. The Audit Committee is entrusted by the Board to ensure effectiveness of the Group’s internal control and risk management system. Due to the limitations that are inherent in any system of internal control, the systems of internal controls can only provide reasonable and not absolute assurance against material misstatement or loss as it is designated to manage rather than eliminate the risk of failure to achieve the Group’s business objectives. Risk Management The Board confirms that there is an on-going process of identifying, assessing and responding to risks to achieve the objectives of the Group for the financial year under review. The process was in place for the year under review and up to the date of issuance of the Statement on Risk Management and Internal Control. As part of the Risk Management process, a Registry of Risk and the Risk Management Handbook were adopted. The Risk Management Handbook summarises risk management methodology, approach and processes, roles and responsibilities, and various risk management concept. The Registry of Risk and Risk Matrix are maintained to identify principal business risk and updated for on-going changes in the risk profile. Internal Audit Functions In accordance with the Malaysian Code on Corporate Governance, the Group in its efforts to provide adequate and effective internal control system had appointed Sterling Business Alignment Consulting Sdn Bhd (“Sterling”), an independent consulting firm to review the adequacy and integrity of its system of internal control. Sterling acts as the internal auditor reports directly to the Audit Committee on quarterly basis. The internal auditor reviews and addresses critical business processes, identified risks and internal control gaps, assessed the effectiveness andadequacy of the existing state of internal control of theGroupand recommended possible improvements to internal control process. This is to provide reasonable assurance that such systems continue to operate satisfactorily and effectively within the Group. Quarterly audit reports and status report on follow up actions were tabled to the Audit Committee and Board during quarterly Audit Committee Meetings. For the financial year ended 31 December 2015, the following subsidiaries of the Group were audited by Sterling:- Audit Period Reporting Month Name of Entity Audited Audited Areas Jan – Mar 2015 May 2015 Insage (MSC) Sdn Bhd and Winvest Global Sdn Bhd Project Management Apr – Jun 2015 August 2015 Excel Force MSC Berhad Quality Assurance Jul – Sep 2015 November 2015 Winvest Global Sdn Bhd Finance & Account Human Resources Management and Administration Oct – Dec 2015 February 2016 Excel Force MSC Berhad Risk Management