53 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2022 (3061 3*4, ."/"(&.&/5 4:45&. (Cont’d) $SFEJU 3JTL The Group is exposed to credit risk inherent in its existing business operations and lending business, arises from trade receivables and loans to merchants. The Group actively monitor and manage the credit risk to keep the credit risk exposure within the financial capability of the Group. During the year, the Group has established a Group Credit and Collection Policy that covers the collection process for trade receivables as well as the lending criteria and risk models using existing merchant information, prior repayment records and other indicators to assess merchant credit worthiness and assist in making credit decisions. &4( &OWJSPONFOUBM 4PDJBM (PWFSOBODF 4VTUBJOBCJMJUZ 3JTLT The Board has approved four policies last year specifically related to Environmental and Social aspects of the ESG Risk Management which are (1) Climate Change & Risk Policy, (2) Labour & Human Rights Policy, (3) Gender Diversity Policy and (4) Senior Management Remuneration Policy and Procedure. Further to the said four policies, the Risk Management principles of the Group are also to be guided by the Governance perspective of ESG risk with the five (5) other main policies, i.e.: Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Policy, Anti-Bribery and Corruption Policy, Whistleblowing Policy and the Code of Ethics and Conduct. With all these nine (9) policies in place, the Group Risk together with the Group Legal, Compliance and Sustainability continues to ensure the ESG risks as enshrines in the said Policy are assessed and complied by the Group accordingly to ensure that the Group is not expose to the said ESG risks. ,&: */5&3/"- $0/530- 130$&44&4 The following areas of governance contain clearly defined corporate values, code of business ethics and conduct as well as comprehensive policies and procedures to assist Management in ensuring that a sound system of internal control is maintained in the Group. "VUIPSJUZ BOE 3FTQPOTJCJMJUZ B #PBSE $PNNJUUFFT Board Committees are established and operate under clearly defined Terms of Reference (“TOR”) to provide oversight function and ascertain the adequacy of the internal control framework in the Group. TOR is reviewed periodically to objectively and independently focus on certain responsibilities delegated by the Board. C %FMFHBUJPO PG "VUIPSJUZ The Delegation of Authority clearly defines the authority and authorisation limits of the Management in all aspects of the Company’s key business decisions, provides guidance on the division of responsibilities, and is periodically reviewed to reflect and be in line with the growth of the business, operational and organizational environment. .POJUPSJOH BOE 3FQPSUJOH Monthly management meetings are led by the respective country heads for various lines of operations and business units, on key business performance, operating statistics, and regular matters. This enables effective monitoring of significant variances and deviation from standard operating procedures and budget. The Board is also kept appraised of the Company’s performance during the scheduled board meetings with the Company’s business performance and plans being reviewed and deliberated. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL CONT’D
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