KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2024 WE ARE KENANGA OUR SUSTAINABILITY APPROACH LEADERSHIP STATEMENT HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION OUR VALUE CREATION APPROACH 139 138 In this regard, during 2024, the AC had deliberated on the following review reports tabled by ICR: Date of AC Meeting Titles of Review Report 24 January 2024 Post Approval Review of Share Margin Financing 26 March 2024 Post Approval Review of Corporate Banking’s Loans/ Financing Post Approval Review of Kenanga Capital Sdn Bhd’s Loan During its deliberation, the AC had taken note of the findings raised by ICR arising from the respective reviews, as well as the recommendations made by ICR together with Management’s action plans in addressing those findings. Integrity, Regulatory and Governance KIBB Group had implemented numerous policies to facilitate its adherence to the Guidelines on Adequate Procedures issued pursuant to Section 17A (5) of the Malaysian Anti-Corruption Commission Act 2009, and to keep abreast with the best practices and high standards of ethics and integrity, and these policies include the following: Pursuant to the Group Conflict Management Policy, the Register of Conflict of Interest would be maintained by three (3) departments, namely Group Company Secretarial, Group Compliance and Group Human Resource, to capture the conflict of interest within KIBB Group in respect of the Board members, business and employees and the same would be submitted to GBEI for consolidation. In line with the requirement specified in the aforesaid policies, the information in relation to actual or potential conflicts, sponsorships, gifts, entertainment and hospitality, which fell within the scope of these policies received from the employees will be compiled and relevant report will be tabled by GBEI to the AC for its notification on an annual basis. In relation thereto, the AC at its meeting held on 27 February 2024 had taken note of the summary of information submitted by the employees within KIBB Group to GBEI for the period from January 2023 until December 2023. The AC, at its meetings held on 26 March 2024 and 24 October 2024 had also taken note of the outcome of the review performed by Group Prudential Supervision & Regulatory Affairs (“GPSRA”) in relation to the status of implementation of action plans taken by the relevant departments following GPSRA’s regulatory issuances of new, revised and updated regulations to ensure KIBB’s compliance with the relevant regulatory requirements prescribed by the respective regulators. At its meeting held on 25 July 2024, the AC had reviewed and deliberated on the investigation report pertaining to a reported whistleblowing case. The case was further deliberated by the Board of KIBB on 12 August 2024. 3.9 a b c Group Conflict Management Policy Group Incoming NonCommercial Sponsorship Policy Group Gifts, Entertainment and Hospitality Policy Joint Meetings Between the AC and the GBRC Pursuant to BNM’s Policy Document on Risk Governance, the GBRC and the AC are expected to periodically meet to ensure effective exchange of information to enable effective coverage of all risks, including emerging risk issues that could have an impact on KIBB Group’s risk appetite and business plans. In this regard, joint meeting between the AC and the GBRC was held on 18 October 2024 in line with the aforementioned BNM’s requirement to deliberate on the Post Approval Review of Corporate Banking Loans/ Financing. 4. INTERNAL AUDIT FUNCTION The internal audit function of KIBB is established in-house. In discharging its responsibilities, GIA, which reports functionally to the AC and administratively to the Group Managing Director, provides independent and objective assurance to the Board and Management that the policies, procedures and operations that Management has put in place for risk management, control and governance are adequate, operating effectively and efficiently, and in compliance with prescribed laws and regulations. During the year under review, GIA carried out internal audit reviews based on its 2024 Audit Plan as approved by the AC. This Audit Plan was developed using a risk-based methodology. The audit reviews conducted by GIA included business support processes, Information Technology/ technical audits and compliance audits on regulatory requirements. All GIA’s reports, detailing the audit findings, audit recommendations, as well as Management’s responses to those recommendations were circulated to the Group Managing Director and Heads of the respective Divisions/ Departments within KIBB Group. Follow-up reviews were performed on the implementation status of the audit recommendations and reported to the AC accordingly. The total costs incurred by GIA in discharging its functions and responsibilities in 2024 amounted to RM5.455 million. As at 31 December 2024, GIA’s headcount was twenty-three (23). 4.1 4.2 4.3 4.4 3.10 AUDIT COMMITTEE REPORT AUDIT COMMITTEE REPORT
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