STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL • In the course of conducting annual statutory audit, the External Auditor will highlight any significant audit, accounting and internal control matters which require attention of the Board and Audit and Risk Management Committee. At least once a year, the Audit and Risk Management Committee shall meet the External Auditor without the Executive Directors and management being present. This year, the Audit Committee had communicated and met with the External Auditors on 24 June 2024 without the Executive Directors and management being present to discuss and highlight on any audit issues which require attention. • Whistleblowing Policy The Group has instituted a whistleblowing policy with feedback channels to allow anyone in the Matrix Group to disclose information pertaining to misconduct or improprieties in a safe and secure manner. The confidentiality of the whistleblower is assured throughout the process. There were no reports made during the FY2024. MONITORING AND REVIEW OF THE ADEQUACY AND INTEGRITY OF THE SYSTEM OF INTERNAL CONTROL The Board considered the risk management and internal control process in the Group during the financial year to be adequate and effective. A review on the adequacy and effectiveness of the risk management and internal controls systems has been undertaken based on information from: a) Management within the organisation responsible for the development and maintenance of the risk management and internal control framework; b) Assessments of major business units and functional controls by respective management to complement the above input in providing a holistic view on the effectiveness of the Group’s RMIC framework; and c) The work by the internal audit function in accordance with the Internal Audit Plan document highlighting the key processes, which have been defined based on the Risk Profile of the Group as well as Internal Audit reports to the Audit and Risk Management Committee together with recommendations for improvement. The Audit and Risk Management Committee will address and monitor the implementation of key action plans and any internal control weakness and ensure continuous process improvement. During the financial year under review, a number of improvements to internal controls were identified and addressed. There have been no significant weaknesses noted which have resulted in any material losses. The Board has been assured by the Group Managing Director and Chief Financial Officer that the Group’s risk management and internal control system are operating adequately and effectively, in all material aspects, based on the risk management and internal control system of the Group. The Board considers the system of RMIC as described in this statement to be satisfactory and the risks to be at an acceptable level within the context of the Group’s business environment. As the development of an efficient system of internal controls is an ongoing process, the Board and management maintain an ongoing commitment to continue taking appropriate measures to strengthen the risk management and internal control environment of the Group. RISKS REVIEW FOR THE FINANCIAL YEAR A half-yearly review on the adequacy and effectiveness of the risk management and internal control systems have been undertaken for the financial year under review. During the financial year under review, each business unit via its respective working groups, comprising personnel at all levels carried out the following areas of work for periodic review:- • Conducted reviews and updates of risk profiles of principal risks and emerging risks which will potentially derail the achievement of business objectives and goals. • Evaluated the adequacy of key processes, systems, and internal controls in relation to the rated principal risks, and established strategic responses, actionable programmes and tasks to manage the aforementioned and/or eliminate performance gaps. OUR GOVERNANCE MATRIX CONCEPTS HOLDINGS BERHAD 130
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