CORPORATE GOVERNANCE OVERVIEW STATEMENT (CONT’D) PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D) PART II: RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK 11. Effective Risk Management and Internal Control Framework The Board affirms its duties in ensuring the adequacy and reliability of the Group’s risk management and internal control systems, with the objective of safeguarding the Group’s assets, shareholders’ investments, and stakeholders’ interests. To fulfil this commitment, the Board has established an Enterprise Risk Management (“ERM”) Framework with 6 key risk management process: 1. Communication and consultation; 2. Establishing the scope, context and criteria; 3. Risk assessment; 4. Risk treatment; 5. Monitoring and review; and 6. Recording and reporting. Additionally, the Board has established various internal control systems, including company policies and standard operating procedures (“SOPs”), to enhance the effectiveness of business operations while upholding sound governance principles. The ARMC assists the Board in overseeing the adequacy and effectiveness of the Group’s risk management and internal control systems, ensuring that the risk management process is well-established and functioning effectively. The ARMC is supported by the Executive Committee, which is responsible for monitoring and reviewing the risks and opportunities associated with the business strategies, operating processes, and the achievement of objectives. Whereas, the Governance, Risk and Compliance (“GRC”) team is responsible for driving the risk management process across the Group and reporting to the Executive Committee. The HODs are primarily responsible for conducting regular reviews to identify and assess the risks, as well as implementing risk action plans to mitigate their likelihood and impact. Further details on the current state of risk management and internal controls within the Group is set out in the Statement on Risk Management and Internal Control in this Annual Report. 12. Internal Audit Function The ARMC is responsible for ensuring the effectiveness of the internal audit function within the Group, including but not limited to: (i) review the adequacy of the scope, functions, competency and resources of the internal audit function and ensure that it has the necessary authority to carry out its work; and (ii) review the internal audit plan, processes, the results of the internal audit assessment or investigation undertaken and ensure the appropriate corrective actions are taken based on the recommendations of the internal audit function. 124 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M)
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