44 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2022 CORPORATE GOVERNANCE OVERVIEW STATEMENT CONT’D 13*/$*1-& # &''&$5*7& "6%*5 "/% RISK MANAGEMENT * "6%*5 "/% 3*4, $0..*55&& i"3$w The ARC takes on the role of assisting the Board in the discharge of its responsibility of overseeing the financial reporting process and ensuring that the results of the Company’s operations are fairly presented in its financial statements. The ARC comprises four (4) members in which the ARC is currently chaired by Dato’ Chan Choy Lin, Carol, an Independent and Non-Executive Director. The Terms of Reference set out its duties and responsibilities, are disclosed on the Company’s official website at www.ghl.com. Through the Policy Statement on Auditor Independence, which was approved by the Board, the policy establishes the responsibility to assess the suitability, objectivity, and independence of the External Auditor to the ARC. A full Audit and Risk Committee Report enumerating its composition, summary of activities and the Group Internal Audit function during the financial year is included in this Annual Report. ** 3*4, ."/"(&.&/5 "/% */5&3/"- $0/530- '3".&803, The Board acknowledges its responsibility for maintaining a sound system of risk management and internal control of the Group that provides reasonable assurance of effective and efficient business operations, compliance with laws and regulations as well as internal procedures and guidelines. The Board has delegated to the ARC the responsibility of reviewing the effectiveness of control procedures and risk management framework and to report to the Board on all its findings and recommendations for deliberations. This system, by its nature, can however only provide reasonable but not absolute assurance against misstatement, fraud, or loss. This system is reviewed at least bi-annually by the Board in terms of its continuing adequacy and operating effectiveness in all material aspects. The Statement on Risk Management and Internal Control furnished in this Annual Report provides an overview of the state of risk management and internal controls within the Group. 4VTUBJOBCJMJUZ 4USBUFHJFT The Sustainability Committee established in 2021 has brought the Company further in the Company’s sustainability goals by referring to United Nation Sustainable Development Goals and the Company’s Sustainability Framework. The Company has since celebrated an important milestone in its sustainability journey in 2022 when the Company was included in the FTSE4Good Bursa Malaysia and FTSE4Good Bursa Malaysia Shariah Index for meeting the FTSE4Good criteria and SAC status. As part of the commitment to the four main sustainability action plans as highlighted in the Sustainability Report, the Board in 2022 has reviewed and approved policies to govern the three pillars of sustainability namely Environment, Social and Governance. The policies are a) Labour & Human Rights Policy; b) Senior Management Remuneration Policy & Procedure; c) Whistleblowing Policy; d) Anti Bribery and Corruption Policy; e) Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities (“AML”) Policy; and f) Group Occupational Health, Safety and Environment Policy.
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