123 ANNUAL REPORT 2024 MST GOLF GROUP BERHAD STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL The Board is pleased to present its Statement on Risk Management and Internal Control (“Statement”) which outlines the nature and scope of the risk management and internal control of the Group for FY2024. This Statement is issued in line with the MMLR on the status of the Group’s compliance with the principles and best practices relating to risk management and internal control as stipulated in the latest MCCG. BOARD RESPONSIBILITIES The Board recognises the importance of sound systems on risk management and internal control in its business operations to safeguard the assets and interests of the Group and its stakeholders. The risk-based internal control framework of the Group incorporates various control mechanisms, covering strategic, operational, reporting and compliance with applicable laws, rules, directives and guidelines. The Board has the overall responsibility of overseeing the governance, risk management and internal control systems of the Group, and is assisted by the GRSC and the AC. The Executive Risk Committee which consists of the executive directors, supports the Board to closely monitor the Group’s internal control systems to ensure they stay aligned with the Group’s objectives and risk appetite. The Management integrates risk management and internal control systems across all facets of the Group's operations, ensures the adoption of approved processes, procedures and practices to effectively address both existing and emerging risks throughout the organization, and promptly reports deficiencies and weaknesses in the control environment to the Board for timely risk mitigation. In view of limitations inherent in any process, the Board acknowledges that the risk management and internal control framework is designed to manage and mitigate the risks within tolerable levels. Therefore, the framework, processes and procedures within it can only provide reasonable but not absolute assurance against material misstatements, frauds and losses. The following diagram illustrates the Group’s risk management and internal control accountability and reporting structure: The roles and responsibilities of the AC and GRSC are disclosed on pages 117, 120 and 124. BOARD OF DIRECTORS ("BOARD") GOVERNANCE, RISK AND SUSTAINABILITY COMMITTEE ("GRSC") AUDIT COMMITTEE ("AC") RISK MANAGEMENT WORKING GROUP Consisting of all heads of departments EXECUTIVE RISK COMMITTEE Consisting of all Executive Directors and the head of risk and control RISK OWNERS INTERNAL AUDITORS Accountability, Reporting Delegation, Direction, Resources, Oversight Alignment, Communication, Coordination, Collaboration
RkJQdWJsaXNoZXIy NDgzMzc=