141 ANNUAL REPORT 2025 MST GOLF GROUP BERHAD STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL All capitalised words and phrases as well as acronyms used in this Statement on Risk Management and Internal Control carry the same definition as those used in the Corporate Governance Overview Statement of the Annual Report. 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 FY2025. This Statement is issued in line with: (a) The MMLR on the status of the Group’s compliance with the principles outlined below; (b) Best practices relating to risk management and internal control as stipulated in the latest MCCG; and (c) SORMIC Guide 2025 (Statement on Risk Management and Internal Control – Guidelines for Directors of Listed Companies). Board Responsibilities The Board acknowledges its ultimate responsibility for maintaining a sound system of risk management and internal control. This system is designed to safeguard the Group’s assets, protect stakeholders’ interests, and support the achievement of the Group’s strategic and operational objectives. The risk-based internal control framework encompasses governance, strategic, operational, financial reporting, and compliance controls to ensure a structured and disciplined approach to risk oversight. The Board retains overall accountability for overseeing the adequacy and effectiveness of the Group’s risk management and internal control systems. In discharging this responsibility, the Board works closely with Management to continuously review, monitor, and enhance the control environment to ensure alignment with the Group’s objectives, risk appetite, and regulatory expectations. Management is responsible for implementing and maintaining effective risk management and internal control processes across all business functions. This includes establishing approved policies, procedures, and control mechanisms to address existing and emerging risks, as well as promptly reporting significant control deficiencies and risk exposures to the Board to enable timely and appropriate mitigation actions. The Board recognises that the risk management and internal control framework is designed to manage, rather than eliminate, the risk of failure to achieve business objectives. Accordingly, the system can provide reasonable, but not absolute, assurance against material misstatement, fraud, or loss. Internal Control Framework The Group adopts the latest internal control frameworks by Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) i.e., the COSO Internal Control – Integrated Framework 2013. The Group also adopts the seventeen principles across the five elements in the COSO Internal Control – Integrated Framework 2013 to achieve these objectives:
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