44 Annual Report 2025 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 internal control system of the Company and its subsidiary companies (“the Group”) for the financial year ended 30 June 2025 pursuant to Paragraph 15.26(b) of the Main Market Listing Requirement of Bursa Malaysia Securities Berhad (“MMLR”), Malaysia Code on Corporate Governance (“MCCG”) and as guided by “Statement on Internal Control and Risk Management: Guidelines for Directors of Listed Issuers” (“the Guideline”). BOARD RESPONSIBILITY The Board affirms its overall responsibility for maintaining an effective Group’s systems of internal controls and risk management to safeguard its investment, the interest of customers, regulators, employees, and the Group’s assets. The Board further recognises its responsibility in reviewing the adequacy and integrity of these systems. The Audit Committee is entrusted by the Board to ensure the 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 system 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. MANAGEMENT’S ROLE Management is responsible for implementing the processes for identifying, evaluating, monitoring and reporting of risks and internal control, taking appropriate and timely corrective actions as needed, and for providing assurance to the board that the processes have been carried out. The responsibilities of management in respect of risk management include:- • Identify the risks relevant to the business of the company and the achievement of objectives and strategies; • Design, implement and monitor the risk management framework in accordance with the company’s strategic vision and overall risk appetite; and • Identify changes to risk or emerging risks, take actions as appropriate, and promptly bring these to the attention of the Board. RISK MANAGEMENT COMMITTEE Risk Management Committee of the Management (“RMCM”) is established at the management level to assist the Audit Committee (“AC”) and the Board in implementing and ensuring efficient and effective risk management of the Company. RMCM conducts its meeting once every three (3) months and additional meetings may be called at any time as and when necessary. The roles and responsibilities of the committee are defined in the terms of reference of RMCM. RISK MANAGEMENT The Board confirms that there is an ongoing process of identifying, assessing and responding to risks for achieving the objectives of the Group for the financial year under review. The process is in place for the financial year under review and up to the date of issuance of the Statement on Risk Management and Internal Control. The process of risk identification involves reviewing and identifying the possible risk exposure which arises from both internal and external environmental changes and operation conditions. The risk measurement guidelines consist of financial and non-financial qualitative measures of risk consequences based on risk likelihood rating and risk impact rating.
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