130 YINSON HOLDINGS BERHAD GOVERNANCE B Effective audit and risk management FINANCIAL REPORTING The Board is responsible for effective risk management for the Group including determining its risk appetite, identifying key strategic and emerging risks, and reviewing the risk management and internal control framework. The AC and BRSC support the Board by assessing the effectiveness of these processes, relying on Company-specific internal control mechanisms to prepare this Integrated Annual Report and Accounts. The Board and Committees receive regular management reports, including analysis of results, forecasts and comparisons with last year’s results, and assurance from the external auditor. The AC is kept fully informed of all new legislation, International Financial Reporting Standards (“IFRS“) advice and best practices, MCCG 2021 disclosure requirements and transparency rules. Before the full-year results, the AC and Board receive periodic Management reports on the effectiveness of internal control over financial reporting. The Company has specific internal mechanisms that govern the financial reporting process and the preparation of the Integrated Annual Report and Accounts. The AC ensures accurate, timely financial results and effective implementation of accounting standards and judgements, including ongoing concerns and viability. Our financial processes include a range of system, transactional and management oversight controls. Detailed business monthly management reports include results analyses, budgets, forecasts and comparisons to previous years. RISK MANAGEMENT AND INTERNAL CONTROLS The Board is responsible for maintaining and reviewing the effectiveness of our risk management activities from strategic, financial, and operational perspectives. Our risk management process identifies, assesses, responds to, reports on and monitors risks that threaten our ability to achieve our strategy and objectives within our risk appetite. The process for identifying, evaluating and managing our principal and emerging risks was in place for the financial year and up to the date of approval of this Report. The BRSC considers emerging risks as part of its regular risk management update. The Company follow the Three Lines of Defence approach to risk management. Risks are owned and managed within the business and reviewed at least quarterly. The Governance team reviews risks and controls, including those relating to information security, compliance and business continuity. IA assesses our risks and controls independently and objectively, feeding results into our reporting cycle through risk management governance structures. Risk management is essential in our global, innovationdriven business. It creates long-term shareholder value and protects our business, people, assets, capital and reputation. It operates at all levels throughout the organisation, across regions, business activities and operational support functions. Our approach encourages clear decisions about which risks we take and how we manage them, based on their potential impact on customers, financials, regulations, consumers, legal matters and reputational. As risk management and internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives, they can provide reasonable but not absolute assurance against material financial misstatement or loss. C Integrity in corporate reporting and meaningful relationship with stakeholders The Board recognises its responsibility to understand the interests and concerns of each stakeholder group and endeavours to engage with empathy and openness to identify shared objectives in the decision-making process. Management teams routinely engage with their stakeholders at business level, escalating critical issues to the Board, utilising structured reporting channels to provide feedback and outcomes which are incorporated into the decision-making of the Board and its Committees. The Board acknowledges it cannot meet every stakeholder’s preference but strives to balance their competing interests in a manner aligned with our values and purpose, business conduct and the sustained long-term success of the business. The Board proactively incorporates external perspectives, through guest speakers, dedicated training sessions and organisational deep dives, to enrich its deliberations and reinforce governance best practices throughout the year. This process helps to identify our key stakeholder groups. This section outlines Yinson’s ten key stakeholder groups and details targeted engagement activities alongside their outcomes and impacts on both business operations and Board decision-making.
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