STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL 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. RESPONSIBILITIES OF THE BOARD The Board acknowledges its responsibility in maintaining an effecঞve 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 ongoing process to conঞnuously review the adequacy, integrity and effecঞveness of the Group’s system of internal controls and risk management framework to ensure implementaঞon of appropriate systems to effecঞvely idenঞfy, evaluate and manage principal risks of the Group and to miঞgate the effects of the principal risks on achieving the Group’s business objecঞves. 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 IAR 2025. In view of the inherent limitaঞons inherent in any system of internal controls and risk management (“RMIC”), it should be appreciated that an effecঞve system of RMIC 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 misstatement, fraud or losses. The Audit Commiee with the assistance of the Risk Management Commiee will assist the Board in reviewing the adequacy, integrity and effecঞveness of the system of internal controls and risk management framework within the Group and to ensure adequate resources are channelled to obtain the level of assurance required by the Board. The Audit Commiee presents all its findings to the Board. The Board is assisted by the Management in implemenঞng the Board’s policies and procedures on risk and control by idenঞfying and assessing the risks faced, and in the design, operaঞon and monitoring of suitable internal controls to manage and control these risks. The Board, through its Risk Management Commiee, is entrusted with the responsibility of implemenঞng and maintaining the Enterprise Risk Management (“ERM”) framework to achieve the following objecঞves:- • Communicate the vision, role, direcঞon and prioriঞes to all employees and key stakeholders; • Idenঞfy, assess, treat, report and monitor significant risks in an effecঞve manner; and • Enable systemaঞc risk review and reporঞng on key risks, exisঞng control measures and any proposed acঞon plans. The key features of the RMIC systems and risk management are as described below. RISK MANAGEMENT AND INTERNAL CONTROLS The following key features have been implemented by the Board in its effort to maintain an effecঞve and sound system of risk management and internal controls:- Risk Management Framework The Risk Management Commiee has been established by the Board with clear defined lines of accountability and authority. They are responsible for idenঞfying business risks, implemenঞng appropriate systems of internal controls to manage these risks and ensuring that there is an ongoing programme to conঞnuously assess, monitor and manage the principal risk of the Group. The Company’s ERM Framework is consistent with the Commiee of Sponsoring Organisaঞons of the Treadway Commission’s (“COSO”) ERM Framework, the Statement on Risk Management and Internal Control: Guidelines for Listed Issuers, Bursa Malaysia’s Corporate Governance Guide and also in line with the ISO 31000’s principles and guidelines for risk management. MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 132 06 OUR GOVERNANCE
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