05 / HOW WE ARE GOVERNED 01 02 03 04 06 07 08 09 151 AUDIT COMMITTEE REPORT In relation thereto, the AC at its meeting held on 26 February 2025 had taken note of the summary of information submitted by the relevant departments or employees within KIBB Group to GBEI for the period from January 2024 until December 2024. The AC, at its meetings held on 26 February 2025 and 22 April 2025 had also taken note of the outcome of the review performed by Group Regulatory Affairs (“GRA”) in relation to the status of implementation of action plans taken by the relevant departments following GRA’s regulatory issuances of new, revised and updated regulations to ensure KIBB Group’s compliance with the relevant regulatory requirements prescribed by the respective regulators. Joint Meeting 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 27 November 2025 in line with the aforementioned BNM’s requirement to deliberate on the Post Approval Review of Corporate Banking Loans/ Financing. At the said meeting, the outcome of the Validation of KIBB’s MFRS 9 Expected Credit Loss Impairment Model and Internal Credit Risk Rating Model for Corporate Loans/ Financings was presented by an external consultant, Deloitte Malaysia SR&T Solutions Sdn Bhd, for the AC’s and GBRC’s deliberation and notation. 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 2025 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 Units/ 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 2025 amounted to RM5.850 million. As at 31 December 2025, GIA’s headcount was twenty-three (23). b 3.10 4.1 4.2 4.3 4.4 INTERNAL AUDIT FUNCTION 4.
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