MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) 136 INTRODUCTION The Board is pleased to present its Risk Management and Internal Control Statement for FY2021 which has been prepared pursuant to paragraph 15.26(b) of the MMLR and Principle B of the MCCG and as guided by Statement on Risk Management & Internal Control: Guidelines for Directors of Public Listed Issuers (“the Guidelines”). This statement outlines the nature and state of the internal controls of the Group. BOARD’S RESPONSIBILITY The Board acknowledges its overall responsibility towards maintaining a sound system of risk management and internal control, and reviewing its adequacy and effectiveness to ensure shareholders’ interest and the Group’s assets are safeguarded. Given the inherent limitations in the risk management and internal control system, such a system put into effect by the Management is designed to identify, evaluate, manage and monitor risks rather than eliminate risks that may impede the Group’s achievement of the corporate objectives. Therefore, such a system can only provide reasonable and not absolute assurance against any material misstatement or loss, contingencies, fraud or irregularities. RISK MANAGEMENT FRAMEWORK The Board recognises that risk management should be an integral part of the business operation. On a day-to-day basis, respective Heads of Departments are responsible for identifying, evaluating, managing and mitigating both existing and potential risks related to their functions and/or departments. Weekly management meetings are held to ensure that the risks encountered by the Group are monitored and properly addressed. It is at these meetings that key risks and corresponding controls implementation is communicated amongst the Senior Management team. The RMC, comprising of entirely independent directors, provides oversight on risk management matters relating to the activities of the Group and ensures prudent risk management over the Group’s operations and businesses. It has constituted the RMWG with an objective to assist the RMC in fulfilling its oversight responsibilities with respect to the Group’s risk management processes including assessment of key strategic and operational risk. The RMWG, comprising of key management staff, conducts their risk management activities and prepares quarterly risk assessment report. Whereas, our in-house internal audit team performs audit work to identify any significant risks of the department. Both RMWG and in-house internal audit team present their findings to the RMC at a quarterly meeting for assessment, discussion and attention. The Chairman of the RMC highlights the salient matters and provides oversight of the entire risk management framework of the Group to the Board at their scheduled meetings. Where necessary, special meetings will be convened to discuss specific matters that require immediate attention. During the financial year under review, the RMWG had met four (4) times with the RMC to update their respective department quarterly risk assessment report for discussion and highlighted the key risk areas affecting the Group as well as recommended risk management strategies to manage and mitigate the identified risks. The Group’s Risk Management Policy established in October 2013 was reviewed by the Board at their scheduled meeting held on 25 February 2022 where it was assessed to be adequate and as for now no further amendments were required by the Board. The abovementioned risk management practices of the Group are the on-going process of identifying, evaluating and managing significant risks that may affect the Group’s achievement of its corporate objectives for the year under review and up to the date of approval of this Risk Management and Internal Control Statement by the Board. RISK MANAGEMENT AND INTERNAL CONTROL STATEMENT
RkJQdWJsaXNoZXIy NDgzMzc=