ANNUAL REPORT 2021 109 GOVERNANCE CORPORATE GOVERNANCE OVERVIEW (CONT’D) PRINCIPAL B: EFFECTIVE AUDIT AND RISK MANAGEMENT I. AUDIT COMMITTEE The AC comprises two (2) Independent Non-Executive Directors and one (1) Non-Independent Non-Executive Director that plays a key role in ensuring integrity and transparency of corporate reporting. The AC’s role is to review and where necessary, to challenge Management to ensure that appropriate disclosures of accounting treatment and accounting policies are made. The AC has a duty to provide assurance to the Board that robust risk management, internal controls and assurance processes are in place. It continues to monitor the potential risks of the Group and ensures that mitigating measures are in place to safeguard the health, safety and business continuity of the Group. The AC with the assistance of the internal audit function had undertaken a thorough review of the following areas within the Group to ensure that appropriate controls and effective management processes are in place:- a) Finance Department (Sales) b) Human Resources Department c) Industrial Relation Department d) Information Technology Department e) Myassist Operations Annually, the composition of the AC is reviewed by the NC and recommended to the Board for its approval. The Board is satisfied with the performance of the AC in discharging its responsibilities, based on the results of the evaluation undertook during the year. Further details pertaining to the activities undertaken by the AC can be obtained in the AC Report set out on pages 134 to 135 of this Annual Report. II. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK Risk management is a critical component of good management practice and effective corporate governance. With the Risk Management Policy being in place, the Board’s decision-making was supported by sufficient information for the right discussions and considerations. The enhanced level of risk debate and greater involvement from the Management was also critical in ensuring that appropriate monitoring and mitigations were embedded to support the proposals under discussion. The Board fulfils its responsibilities in the risk governance and oversight functions through its RMC in order to manage the overall risk exposure of the Group. In addition to reviewing the adequacy and effectiveness of the internal control system of the Group, the RMC also assessed and monitored the efficacy of the risk management and controls. The Board will continue to drive a proactive risk management approach and ensure that the Group’s employees have a good understanding of the application of risk management principles in order to work towards cultivating a sustainable risk management culture. The Board will also continue to challenge the Group’s risk reporting mechanism and ensure that it is data-driven to capture and quantify exposures where applicable and necessary. The Board is of the view that the system of internal control and risk management in place during the FY2021 is sound and sufficient to safeguard the Group’s assets, as well as shareholders’ investments and the interest of its stakeholders. The details of the Risk Management and Internal Control Framework can be obtained in the Risk Management and Internal Control Statement set out on pages 136 to 138 of this Annual Report.
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