102 WE ARE KENANGA LEADERSHIP MESSAGE VALUE CREATION MODEL KENANGA INVESTMENT BANK BERHAD ANNUAL REPORT 2023 ETHICS AND COMPLIANCE STATEMENT Anti-Bribery and Corruption Risk Assessment Kenanga Group took proactive steps to assess AntiBribery and Corruption (“ABC”) risks, engaging Baker Tilly MH Consulting Sdn Bhd (“BTMHC”) in 2022, to conduct a thorough review. This initiative, in accordance with the Guidelines on Adequate Procedures, highlights the crucial need for periodic evaluations to ensure adherence to ABC policies and procedures. Encompassing all entities within the Group, the assessment rigorously evaluated the adequacy of our policies, procedures, and controls, emphasising the pivotal role of effectively managing ABC risks throughout our organisation. The assessment yielded positive results, indicating that Kenanga Group has already implemented and actively monitors high-risk areas effectively. In light of these findings, BTMHC recommended extending the ABC risk assessment to other areas of the Group, aligning with the Securities Commission Malaysia’s Observations and Good Practices Relating to Compliance with Corporate Liability Provision. This positive outcome highlights Kenanga Group’s commitment to proactively addressing ABC risks and ensuring compliance across all facets of our operations. Strengthening Controls Against External Threats Anti-Fraud, Bribery and Corruption Kenanga Group has always prioritised the safeguarding of our operations against external threats, particularly fraud. The Group Anti-Fraud, Bribery, and Corruption Reporting Procedure (“AFBC Reporting Procedure”) has been integral to our operations since its inception. This framework outlines stringent controls to detect, prevent, and address instances of internal fraud, bribery, and corruption. Building upon this foundation, we introduced the Guidance on Handling Incidents of External Fraud (“External Fraud Guidance”) in 2023. This framework complements our existing controls by providing specific measures tailored to respond to external fraud threats. Through the implementation of the Kenanga Group is subject to the provisions of the MACCA along with relevant local laws, rules, and regulations concerning anti-fraud, bribery, and corruption as stipulated by regulatory authorities. In line with this, the Group adopts a zero-tolerance stance towards all manifestations of fraud, bribery, and corruption. We expect our Board, Senior Management, and employees to uphold this approach rigorously. Similarly, the Group requires the same level of commitment from all third parties with whom we engage, regardless of the context or manner of engagement. The AFBC Policy, or Group Anti-Fraud, Bribery, and Corruption Policy, delineates the foundational principles guiding the Group in addressing and mitigating risks associated with fraud, bribery, and corruption across all our operations. This policy outlines the principles concerning top-level commitment, organisation-wide risk assessment, control measures, as well as monitoring and training programmes at Kenanga. Aligned with the AFBC Policy, the AFBC Reporting Procedure provides detailed guidelines and protocols for the Board and employees regarding the reporting of instances involving fraud, bribery, and corruption, as well as the necessary actions to be taken in response. External Fraud Guidance, we have further fortified our defences, enhancing our ability to mitigate risks stemming from sources beyond our organisation's borders. By strategically balancing controls targeting both internal and external threats, Kenanga Group demonstrates its proactive approach to risk management. We remain steadfast in our commitment to upholding the highest standards of governance and compliance, thereby safeguarding the trust and confidence of our clients and stakeholders. As we continue to adapt to the evolving landscape of fraud and misconduct, Kenanga Group remains vigilant in refining and strengthening our controls. The Board exercises vigilance over ethics and compliance risks to ensure effective implementation of management strategies, frameworks, and policies. In collaboration with all stakeholders, GRCS endeavours to harmonise business direction with the established strategies, frameworks, and policies, fostering a culture where professionalism, ethics, and compliance take precedence. UPHOLDING HIGH STANDARDS OF CORPORATE GOVERNANCE
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