My EG Services Berhad Annual Report 2020

ANNUAL REPORT 2020 109 B. EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D) II. Risk Management and Internal Control Framework The Board assumes ultimate responsibility for the effective management of risk across the Group, determining its risk appetite as well as ensuring that each business area implements appropriate internal controls. In order to achieve such objective, a risk management policy has been adopted by the Group. The Group’s risk management systems are designed to manage, mitigate and eliminate risks (where possible) to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Board has delegated its responsibility for reviewing the effectiveness of the Group’s systems of internal control to the RMC. This covers all material controls including financial, operational, compliance and risk management systems. The RMC is further supported by a number of sources of internal assurance within the Group in order to determine the adequacy and effectiveness of the existing risk controls. The Group has outsourced the internal audit function as being the most cost effective means of implementing an internal audit function. The independent third party service provider of the internal audit services for the FY2020 was Vaersa Advisory Sdn. Bhd. (“ Vaersa ”), which reported directly to the AC as specified in the Terms of Reference of the AC. The internal auditors carry out its function in accordance with the approved annual *OUFSOBM "VEJU 1MBO BQQSPWFE CZ UIF "$ 7BFSTB IBT BQQSPYJNBUFMZ FJHIU BVEJU QFSTPOOFM BTTJTUJOH UIF QFSTPO SFTQPOTJCMF GPS UIF JOUFSOBM BVEJU %FUBJMT PO UIF QFSTPO SFTQPOTJCMF GPS UIF JOUFSOBM BVEJU BSF BT TFU PVU CFMPX Name Ramnath R Sundaram Qualification Associate of Chartered Certified Accountant Independence Does not have any family relationship with any director and/or major shareholder of the Company Public Sanction or penalty )BT OP DPOWJDUJPOT GPS BOZ PGGFODFT XJUIJO UIF QBTU ZFBST PUIFS UIBO USBGàD offences, if any and has not been imposed any public sanction or penalty by the relevant regulatory bodies during the financial period 'VSUIFS JOGPSNBUJPO NBZ CF GPVOE JO UIF 3JTL .BOBHFNFOU BOE *OUFSOBM $POUSPM 4UBUFNFOU PO QBHF UP QBHF BOE UIF .BOBHFNFOU %JTDVTTJPO BOE "OBMZTJT PO QBHF UP QBHF PG UIJT SFQPSU C. INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS I. Communication with stakeholders The Board believes that stakeholders’ communication is an essential requirement of the Group’s sustainability. In view thereof, stakeholders are informed of all material business events and risks of the Group in a factual, timely and widely available manner. The Board has formalised a Corporate Disclosure Policy and Procedure not only UP DPNQMZ XJUI UIF EJTDPVSTF SFRVJSFNFOUT BT TUJQVMBUFE JO UIF ..-3 PG #VSTB 4FDVSJUJFT CVU BMTP TFUT PVU UIF persons authorised and responsible to approve and disclose material information to all stakeholders. 5IF #PBSE SFDPHOJTFT UIF JNQPSUBODF PG GBDJMJUBUJOH FGGFDUJWF UXP XBZ DPNNVOJDBUJPO XJUI JOWFTUPST BOE BOBMZTUT to provide a greater understanding of the Group’s vision, strategies, developments and financial prospects. A variety of engagement initiatives including direct meetings and dialogues with stakeholders are constantly conducted to enhance mutual understanding. The Group’s financial performance, major corporate developments and other relevant information are promptly disseminated to shareholders and investors via announcements of its quarterly results, annual report, corporate announcements to Bursa Securities and press conferences. It is the Group’s practice that any material information for public announcement, including annual, quarterly financial statements, press releases, and presentation to investors, analysts and media are factual and reviewed internally before issuance to ensure accuracy and is expressed in a clear and objective manner. CORPORATE GOVERNANCE STATEMENT (CONT’D) GOVERNANCE