RISK MANAGEMENT AND INTERNAL CONTROL STATEMENT INTRODUCTION The Board is pleased to present its Risk Management and Internal Control Statement (“Statement”) for FY2025. This Statement has been prepared in accordance with paragraph 15.26(b) of the MMLR of Bursa Securities, Principle B of the MCCG relating to risk management and internal control framework, and as guided by the Statement on Risk Management & Internal Control: Guidelines for Directors of Public Listed Issuers (“the Guidelines”). This Statement outlines the nature and scope of the risk management and internal control framework within the Group throughout the year under review. BOARD’S RESPONSIBILITY The Board affirms its fiduciary responsibility to maintain a sound and effective system of risk management and internal control, in line with Paragraph 15.26(b) of the MMLR and Principle B of the MCCG. This system is subject to regular review to ensure its continued adequacy in safeguarding shareholders’ value, protecting the Group’s assets, and supporting sustainable growth. While Management is tasked with the design and implementation of these systems, the Board acknowledges the inherent limitations of any internal control framework. Such systems are designed to manage rather that eliminate the risk of failure; therefore, they provide reasonable, but not absolute, assurance against material misstatements, operational failures, fraud, or non-compliance with laws and regulations. The Board’s oversight focuses on several critical areas, including: • Ensuring the risk management framework remains aligned with the Group’s strategic objectives and risk appetite; • Continually monitoring the enhancement of controls to address emerging risks and operational shifts; and • Fostering a culture of integrity and risk awareness across the organisation. This comprehensive approach enables the Board to maintain effective oversight while remaining agile in addressing the Group’s evolving needs. RISK MANAGEMENT FRAMEWORK The Board recognises that effective risk management is fundamental to the Group’s operations resilience. Consequently, Heads of Departments (“HODs”) are primary risk owners, responsible for identifying, evaluating, and mitigating risks within their respective functions on a daily basis. To ensure continuous risk oversight, weekly management meetings serve as a platform to address key risks in a timely and comprehensive manner. During these sessions, significant risks are deliberated, and appropriate control measures are communicated and implemented by Senior Management. The Risk Management Committee (“RMC”) is tasked with overseeing the Group’s risk management framework and ensuring the adoption of sound risk management practices across the Group’s operations and business activities. To support the RMC, HODs evaluate the effectiveness of the risk processes, and assess key strategic and operational risks. The HODs conduct regular risk management activities and prepare quarterly risk assessment reports. Concurrently, the in-house Internal Audit team performs audits to identify and validate significant risks within each department. Both HODs and the Internal Audit team present their findings to the RMC during quarterly meetings for assessment, discussion, and necessary action. The Chairman of the RMC subsequently briefs the Board on key findings during scheduled Board meetings. Special meetings are convened as necessary to address urgent risk-related matters. During the financial year under review, the HODs met with the RMC on four (4) occasions to present updates on their respective departments’ quarterly risk assessment reports. These meetings facilitated in-depth discussions on key risk areas enabling the Group to implement targeted strategies to mitigate potential impact effectively. The risk management practices outlined above constitute an ongoing process designed to identify, evaluate, mitigate, and manage significant risks that may affect the Group’s ability to achieve its corporate objectives. This process remained in effect throughout the financial year under review and up to the date of the Board’s approval of this Statement. 186
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