My EG Services Berhad Annual Report 2020

ANNUAL REPORT 2020 93 PRINCIPAL B: EFFECTIVE AUDIT AND RISK MANAGEMENT I. AUDIT COMMITTEE 5IF "$ DPNQSJTFT UISFF *OEFQFOEFOU /PO &YFDVUJWF %JSFDUPST BOE QMBZT B LFZ SPMF JO FOTVSJOH JOUFHSJUZ BOE transparency of corporate reporting. The AC’s role is to review and where necessary, to challenge management to ensure that appropriate disclosures of accounting treatment and accounting policies are made. The AC has a duty to provide assurance to the Board that robust risk management, internal controls and assurance processes are in place. It continues to monitor the potential risks of the Group and ensures that mitigating measures are in place to safeguard the health, safety and business continuity of the Group. The AC with the assistance of the internal audit function had undertaken a thorough review of the following areas XJUIJO UIF (SPVQ UP FOTVSF UIBU BQQSPQSJBUF DPOUSPMT BOE FGGFDUJWF NBOBHFNFOU QSPDFTTFT BSF JO QMBDF a) Operation Department b) Procurement Department c) MYEG ESC Test Centre Subang Murni & Sri Muda Annually, the composition of the AC is reviewed by the NC and recommended to the Board for its approval. The Board is satisfied with the performance of the AC in discharging its responsibilities, based on the results of the evaluation undertook during the year. With the view to maintain an independent and effective AC, the NC ensures UIBU POMZ *OEFQFOEFOU /PO &YFDVUJWF %JSFDUPST XIP IBWF UIF BQQSPQSJBUF MFWFM PG FYQFSUJTF BOE FYQFSJFODF BOE have a sound understanding of the Group’s business would be considered for membership on the AC. Further details pertaining to the activities undertaken by the AC can be obtained in the AC Report set out on pages 111 to 117 of this report. II. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK Risk management is a critical component of good management practice and effective corporate governance. 8JUI UIF 3JTL .BOBHFNFOU 1PMJDZ CFJOH JO QMBDF UIF #PBSE T EFDJTJPO NBLJOH XBT TVQQPSUFE CZ TVGàDJFOU information for the right discussions and considerations. The enhanced level of risk debate and greater involvement from the management was also critical in ensuring that appropriate monitoring and mitigations were embedded to support the proposals under discussion. The Board fulfils its responsibilities in the risk governance and oversight functions through its RMC in order to manage the overall risk exposure of the Group. In addition to reviewing the adequacy and effectiveness of the internal control system of the Group, the RMC also assessed and monitored the efficacy of the risk management and controls. The Board is satisfied with the performance of the RMC in discharging its responsibilities, based on the results of the Board’s evaluation outlook during the year review. The Board will continue to drive a proactive risk management approach and ensure that the Group’s employees have a good understanding of the application of risk management principles in order to work towards cultivating a sustainable risk management culture. The Board will also continue to challenge the Group’s risk reporting NFDIBOJTN BOE FOTVSF UIBU JU JT EBUB ESJWFO UP DBQUVSF BOE RVBOUJGZ FYQPTVSFT XIFSF BQQMJDBCMF BOE OFDFTTBSZ The Board is of the view that the system of internal control and risk management in place during the FY2020 is sound and sufficient to safeguard the Group’s assets, as well as shareholders’ investments and the interest of its stakeholders. The details of the Risk Management and Internal Control Framework can be obtained in the Risk .BOBHFNFOU BOE *OUFSOBM $POUSPM 4UBUFNFOU TFU PVU PO QBHFT UP PG UIJT SFQPSU CORPORATE GOVERNANCE OVERVIEW (CONT’D) GOVERNANCE