STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL The Board and Management ensure that the RMIC framework is embedded into the culture, processes and structures of the Group and clearly communicated to all key management personnel. The framework is responsive to changes in the business environment. The following are initiatives undertaken by the Risk Management Committee during the year:- • Regular review of the Risk Profile of the Group and action plans to be undertaken to manage the principal risks of the Group; and • Regular monitoring of the action plans derived by the “Risk Owners” to address principal risks of the Group. 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 IMPACT 1. Catastrophic 2. Major 3. Moderate 4. Minor 5. Insignificant LIKELIHOOD OF OCCURRENCE 1. RARE/ REMOTE 2. UNLIKELY 3. POSSIBLE 4. LIKELIHOOD 5. ALMOST CERTAIN HIGH SIGNIFICANT LOW MODERATE 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. OUR GOVERNANCE 127 INTEGRATED ANNUAL REPORT 2024
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