ASSURANCE The Board, guided by assurances provided by the Group Managing Director, Chief Financial Officer, and other relevant assurance providers, expresses confidence in the effective and efficient functioning of the Group’s risk management and internal control practices and processes in all material aspects. This confidence provides reasonable assurance that the Group’s assets are safeguarded, and the interests of shareholders and customers are protected. It is important to acknowledge, however, that every risk management and internal control system has inherent limitations. While these systems are designed to mitigate risks, they cannot provide absolute assurance against material misstatements, losses, contingencies, fraud, or irregularities. Despite these limitations, the Board remains committed to continuously enhancing and strengthening the Group’s risk management and internal control framework to mitigate potential risks and uphold the highest standards of governance and accountability. CONTINUOUS ASSESSMENT AND ENHANCEMENT The Board recognises the paramount importance of continually assessing and enhancing the Group’s risk management and internal control practices and processes. In line with this commitment, the Board will persist in its oversight of the Group’s risk management and internal control framework. Additionally, the Board will undertake regular reviews and assessments to gauge the adequacy and effectiveness of the Group’s risk management and internal control practices and processes. These ongoing efforts are aimed at ensuring that the Group’s risk management and internal control practices remain relevant and effective in mitigating the evolving risks faced by the organisation. By staying vigilant and proactive, the Board endeavors to uphold the highest standards of governance and safeguard the interests of stakeholders. CONCLUSION Overall, the Statement provides an overview of the Group’s system of risk management and internal control, including the processes and procedures in place to identify, assess, and manage risks, as well as the role of the AC and Vaersa in reviewing and reporting on the effectiveness of these controls. The Statement acknowledges that the Group operates in a constantly changing and challenging business environment and that the system of risk management and internal controls must continuously evolve to meet these challenges. The Board is committed to taking appropriate action plans when necessary to enhance the Group’s system of risk management and internal controls. It is also worth noting that the Group’s risk management and internal control systems do not apply to the associate companies, but the Group’s interest in these companies is served through Board representation and periodic review of their management accounts. Overall, the Statement appears to provide a reasonable level of assurance to shareholders and stakeholders regarding the Group’s approach to risk management and internal control. However, it is important to note that the effectiveness of these systems can only be fully assessed over time, and stakeholders should continue to monitor the Group’s progress in this area. REVIEW BY EXTERNAL AUDITORS As required by paragraph 15.23 of the MMLR, the External Auditors have reviewed this 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 10.1 and 10.2 of Malaysian Code of Corporate Governance 2021, nor is factually inaccurate. RISK MANAGEMENT AND INTERNAL CONTROL STATEMENT (cont’d) 156 MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K)
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