STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL All identified risks are displayed on a risk matrix based on their risk ranking to assist the Management in prioritising their efforts and appropriately managing the different classes of risks. RISK RATING SCALE – 5 BY 5 MATRIX Risk Category and Risk Appetite RISK CATEGORY GENERAL RISK APPETITE Strategic The Company is prepared to take a certain degree of calculated risks relating to the realization of its performance objectives and long term- goals. Operational The Company attempts to minimise the impact of unforeseen disruption on its operating activities. Financial The Company has a conservative and sound framework of financial policies and procedures to prevent risks that could have a significant impact on the financial results and material misstatements in its financial statements reporting. Eg: gearing ratios. Compliance & Governance The Company applies a zero tolerance policy. 1. CATASTROPHIC 2. MAJOR 3. MODERATE 4. MINOR 5. INSIGNIFICANT 1. UNLIKELY 2. LOW PROBABILITY 3. POSSIBLE 4. HIGH PROBABILITY 5. ALMOST CERTAIN IMPACT LIKELIHOOD OF OCCURENCE The Board and Management ensure that the risk management and control framework is embedded into the culture, processes and structures of the Group. The framework is responsive to changes in the business environment and clearly communicated to all key management personnel. The following are the initiatives undertaken by the Risk Management Committee during the year:- • Continuously review the Risk Profile of the Group and action plans to be undertaken to manage the principal risks of the Group; and • Continuously monitor the action plans derived by the “Risk Owners” to address principal risks of the Group. HIGH KEY MEDIUM LOW INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 123
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