A L - S A L Ā M R E I T A N N U A L R E P O R T 2 0 2 1 118 STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL BOARD ASSURANCE AND LIMITATION The Board acknowledges its overall responsibility for reviewing the adequacy and integrity of the Group’s systems of internal control, identifying principal risks, and establishing appropriate control environment and framework to manage risks. The Board continues to derive its comfort of the state or risk management and internal control of the Fund from the following oversight mechanisms and information compiled for these oversight processes:- - periodic review of financial information covering financial performance and quarterly financial results; - BARC’s oversight of risk management framework, changes in risk magnitudes and status of management implementation of risk mitigation plan; - BARC’s review and consultation with Management on the integrity of the financial results and audited financial statements; - audit findings and reports on the review of systems of internal control provided by the internal auditors and status of Management’s implementation of the audit recommendations; and - Management’s assurance that the Group’s risk management and internal control systems have been operated adequately and effectively, in all material respects. Executive Director and Head of Finance of the Company ensure that the Group's risk management and internal control system is operating adequately and effectively, in all material aspects, based on the risk management and internal control system of the Company. For the financial year under review, the Board is satisfied that the existing level of systems of risk management and internal control is effective to enable the Group to achieve its business objectives and there were no material losses resulted from in this Annual Report. The Board recognises that the systems of risk management and internal control should be continuously improved in line with the evolving business development. Nonetheless, it should be noted that all risk management systems and systems of internal control could only manage rather than eliminate risks of failure to achieve business objectives. Therefore, these systems of risk management and internal control in the Group can only provide reasonable but not absolute assurance against material misstatements, frauds, and losses. The Board will continue to monitor all major risks affecting the Group and take necessary measures to mitigate them and continue to enhance the adequacy and effectiveness of the risk management and internal control systems of the Group. REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS The External Auditors have performed limited assurance procedures on this Statement on Risk Management and Internal Control (“Statement”) in accordance with Malaysian Approved Standard on Assurance Engagements, ISAE 3000 (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information and AAPG 3, Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control included in the Annual Report. They have reported to the Boards that nothing has come to their attention that causes them to believe the Statement intended to be included in the Annual Report is not prepared, in all material respects, in accordance with the disclosures required by Paragraphs 41 and 42 of Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers nor is the Statement factually inaccurate. This Statement is made in accordance with the resolution of the Board of Directors on 24 February 2021.
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