05 / HOW WE ARE GOVERNED 01 02 03 04 06 07 08 09 113 CORPORATE GOVERNANCE OVERVIEW STATEMENT Based on the feedback received from Board members, the following could be concluded: 1. Overall Board Effectiveness a. In terms of the overall effectiveness, the Board was noted to be well diversified in its composition with a mix of the right expertise and skill sets. The Board worked well together with a strong focus on governance and differences in opinion in key decisions were well understood and respected b. In order to further enhance the Board’s effectiveness, the Board members felt that more focus should be put on strategic issues where greater formal and informal discussions between Board members on key strategic issues should be encouraged. c. In relation to Board development plans, the feedback received suggested the need for deeper understanding on technological advancements (e.g. AI) and its impact on KIBB being a financial institution, particularly in relation to new opportunities, new entrants (non-traditional players) and emerging risks. 2. Board Responsibilities a. Under this section, based on the feedback received, the Board was noted to have been effective in providing direction to the Company and in the development and monitoring of strategies in the interest of promoting long term viability. b. The Board was also noted to have understood and actively supported KIBB’s digitalisation plan in order to build a sustainable business going forward, through the annual review of the broader strategy with Management. c. In terms of key enhancements required, some Board members suggested for the Board to spend more time in developing strategies and for more discussion on strategies during Board meetings. d. In terms of process improvement, a Board member suggested for wider use of digital/ AI tools within the Company. e. Whilst the Board was updated on a monthly basis on the Company’s financial performance, mid-year review should be conducted to keep the Board abreast with the progress/ execution of the wider strategy. A separate meeting should be convened for the tabling of the annual budget and business plan for a more effective and in-depth deliberation by the Board. f. The Board was noted to have provided effective oversight on the development and implementation of sustainability strategies in the Company and ensuring ESG aspects were appropriately balanced with the interest of the stakeholders. Good foundation had been laid and was recognised by KIBB’s inclusion in the FTSE4GOOD Bursa Malaysia Index. KIBB was also proactive in its approach to Climate Risk – Stress Testing and Scenario Analysis. g. The Board had also ensured appropriate strategy, technology infrastructure, data management practices and information security practices were in place to address the needs of the Company. h. The Board had built strength through Board evaluation, succession planning and continuous development. The suggestion received from a Board member was for the Board evaluation and succession planning processes to be further improved with the use of technology/ AI. i. The Board needs to review and/ or refresh the compositions of the Boards and the Board Committees of KIBB and its subsidiaries on a regular basis to ensure a well-balanced expertise and experience, as well as diversity of skill sets amongst the Board members, and effective Board and Board Committee succession plan. j. The Board had ensured the integrity of the Company’s financial and non-financial reporting was in conformity with regulatory requirements and good international practices through an effective AC, Group Finance, as well as Group Internal Audit.
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