STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL RESPONSIBILITIES OF THE BOARD The Board acknowledges its responsibility in maintaining an effective and sound system of internal control and risk management, including reviewing its adequacy and integrity in order to safeguard the assets of the Group and shareholders’ investments. The Board has established an on-going process to continuously review the adequacy, integrity and effectiveness of the Group’s system of internal control and risk management framework to ensure implementation of appropriate systems to effectively identify, evaluate and manage principal risks of the Group and to mitigate the effects of the principal risks on achieving the Group’s business objectives. This process includes enhancing the risk management and internal control system as and when there are changes to the business environment or regulatory guidelines. The process has been in place during the year up to the date of approval of this Integrated Annual Report 2023 and is subject to review by the Board. In view of the limitations inherent in any system of internal control and risk management, it should be appreciated that an effective system of internal control and risk management framework is designed to manage principal risks of the Group rather than to eliminate the risks. These systems can only provide reasonable and not absolute assurance against material misstatements, frauds or losses. The Audit Committee with the assistance of the Risk Management Committee will assist the Board in reviewing the adequacy, integrity and effectiveness of the system of internal control and risk management framework within the Group and to ensure adequate resources are channeled to obtain the level of assurance required by the Board. The Audit Committee presents all its findings to the Board. INTRODUCTION Pursuant to paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors (“the Board”) is pleased to provide the following statement on the state of internal control and risk management of the Group. This statement was prepared in accordance with the “Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers” issued by the Institute of Internal Auditors Malaysia. The Board is assisted by the Management in implementing the Board’s policies and procedures on risk and control by identifying and assessing the risks faced, and in the design, operation and monitoring of suitable internal controls to manage and control these risks. The Board, through its Risk Management Committee, is entrusted with the responsibility of implementing and maintaining the Enterprise Risk Management (ERM) framework to achieve the following objectives:- • Communicate the vision, roles, directions and priorities to all employees and key stakeholders; • Identify, assess, treat, report and monitor significant risks in an effective manner; and • Enable systematic risk review and reporting on key risks, existing control measures and any proposed action plans. The key features of the internal control system and risk management are as described henceforth. RISK MANAGEMENT AND INTERNAL CONTROLS The following key features have been implemented by the Board in their effort to maintain an effective and sound system of risk management and internal control:- Risk Management Framework The Risk Management Committee has been established by the Board with clear defined lines of accountability and authority. INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 121
RkJQdWJsaXNoZXIy NDgzMzc=