My EG Services Berhad Annual Report 2019

ANNUAL REPORT 2019 91 REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS As required by paragraph 15.23 of the MMLR, the External Auditors have reviewed this Risk Management and Internal Control Statement. Their review was performed in accordance with Malaysian Approved Standard on Assurance Engagements, ISAE 3000 (Revised), Assurance Engagement Other than Audits or Reviews of Historical Financial Information and Audit and Assurance Practice Guide 3 (AAPG 3): Guidance for Auditors on Engagements to Report on the Risk Management and Internal Control Statement included in this Annual Report, issued by the Malaysian Institute of Accountants. Based on their review, nothing has come to their attention that causes them to believe that this statement is not prepared, in all material respects, in accordance with the disclosures required by paragraph 41 and 42 of the Risk Management and Internal Control Statement: Guidelines for Directors of Listed Issuers and Practice Note 9.1 and 9.2 of Malaysian Code of Corporate Gorvernance 2017 to be set out, nor is factually inaccurate. Moving Forward The Board had on 27 February 2020 approved the separation of ARMC into two (2) committees, namely Audit Committee and Risk Management Committee in line with the recommendation under Step-up Practice 9.3 of the MCCG. The members of the Audit Committee and Risk Management Committee will carry out their respective role starting 27 February 2020 onwards. Membership of Risk Management Committee The MCCG has recommended that the members of Risk Management Committee shall comprise a majority of independent directors. Name of Risk Management Committee Members Position Tan Sri Dato’ Dr Muhammad Rais Bin Abdul Karim Chairman, Independent Non-Executive Director Datuk Mohd Jimmy Wong Bin Abdullah Independent Non-Executive Director Mr Wong Kok Chau Independent Non-Executive Director Functions The Risk Management Committee assists the Board in the following areas: • evaluate the Group’s level of risk tolerance, risk appetite and risk profile; • assess and monitor risks to be within its risk appetite; • review the Company’s internal controls and engage with management to periodically test the adequacy and effectiveness of the risk management framework and internal control system; and • in maintaining a sound system of risk management and internal controls to safeguard shareholders’ investment and the Company’s assets. The new Terms of Reference to reflect the duties and responsibilities of Risk Management Committee is available on the Company’s website: www.myeg.com.my/investor_relations (under the “Corporate Governance” tab). RISK MANAGEMENT COMMITTEE BOARD OF DIRECTORS RISK MANAGEMENT WORKING GROUP RISK MANAGEMENT AND INTERNAL CONTROL STATEMENT (CONT’D) GOVERNANCE