Press Metal Aluminium Holdings Berhad SECTION 4 • EFFECTIVE STEWARDSHIP THROUGH GOOD GOVERNANCE 84 INTRODUCTION In accordance with Paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of public listed companies are required to include in their annual report a statement about the state of risk management and internal control of the listed issuer. The MCCG 2021 requires listed companies to maintain a sound system of internal control to safeguard shareholders’ investments and the Group’s assets. Set out below is the Board’s Statement on Risk Management and Internal Control, which has been prepared in accordance with the “Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers” (the “Guidelines”). This statement does not deal with the associates and joint operation of the Group. Assessments on the adequacy, efficiency and effectiveness of the internal control of the associates and joint operation are performed under the purview of their respective established governing procedures. BOARD RESPONSIBILITY The Board is committed to maintaining both a sound system of risk management and internal control and the proper management of risks throughout the operations of the Group. The Board acknowledges that it is ultimately responsible for the Group’s system of internal control including the establishment of an appropriate control environment and framework, which encompass financial, operational and compliance controls, and risk management. The Board is responsible for ensuring the key risks of the Group are reviewed and managed adequately, as well as evaluating the adequacy and effectiveness of the risk management and internal control system on an ongoing basis. This process has been in place for the financial year under review and up to the date of approval of this statement for inclusion in the annual report. The Board believes the risk management and internal control system in place are adequate and effective to manage the risk of the Group. In view of the limitations inherent in any process, the Group has established a system of internal control and risk management designed to mitigate the risks that may impede the Group from achieving its objectives. As risks cannot be eliminated completely, the system can only provide reasonable, but not absolute assurance against material misstatements, losses or occurrences of unforeseeable circumstances. The Board delegates the responsibility of monitoring the system of risk management and internal control to the RMC and AC. Notwithstanding the delegated responsibilities, the Board retains its overall responsibility in the establishment and oversight of the Group’s risk management framework and internal control system. The Board recognises that the internal control system are designed to manage and minimise rather than eliminate and avoid occurrences of material misstatements or unforeseen circumstances, fraud or losses. RISK MANAGEMENT FRAMEWORK The Group’s ERM framework refers to the ISO 31000:2018 standard and is customised to suit the Group’s operating environment, initiatives and processes. The ERM framework is incorporated into the Risk Management Policy, and approved by the Board, to provide a structured and consistent approach to risk management across the Group. The ERM framework facilitates continuous identification, assessment, management, monitoring and reporting of these risks to provide reasonable assurance regarding the achievement of the Group’s business objectives. The framework is subject to continuous review and improvement ensuring it remains aligned with current ERM practices and the Group’s overall business strategy. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
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