PRINCIPAL B: EFFECTIVE AUDIT AND RISK MANAGEMENT I. AUDIT COMMITTEE The AC plays a key role in ensuring the integrity and transparency of corporate reporting. It comprises two (2) Independent Non-Executive Directors and one (1) Non-Independent Non-Executive Director who provide assurance to the Board that robust risk management, internal controls and assurance processes are in place. The AC’s primary responsibility is to review and where necessary, to challenge Management to ensure that appropriate disclosures of accounting treatment and accounting policies are made. Additionally, it monitors 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. During the FY2022, the AC, with the assistance of the internal audit function, undertook a thorough review of various areas within the Group to ensure that appropriate controls and effective management processes are in place. These areas included: (a) Operation Management (ESC); (b) Project Department; (c) Operation Department (HQ and Logistic); (d) Customer Complaint Management; and (e) Management of Information System. The composition of the AC is reviewed annually by the NC and recommended to the Board for approval. The Board is satisfied with the performance of the AC in discharging its responsibilities, based on the results of the evaluation undertaken during the year. For further details on the activities undertaken by the AC, please refer to the AC Report set out on pages 133 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. Our Risk Management Policy ensures that the Board’s decision-making is supported by sufficient information for the right discussions and considerations. The enhanced level of risk debate and greater involvement from Management is critical in ensuring that appropriate monitoring and mitigations are embedded to support the proposals under discussion. The Board fulfils its responsibilities in the risk governance and oversight functions through its Risk Management Committee (“RMC”), which manages 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 assesses and monitors the efficacy of the risk management and controls. The Board is committed to driving a proactive risk management approach and ensuring that the Group’s employees have a good understanding of the application of risk management principles, in order to cultivate a sustainable risk management culture. The Board will 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 confident that the system of internal control and risk management in place during the FY2022 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 from pages 136 to 138 of this IAR2022. CORPORATE GOVERNANCE OVERVIEW (cont’d) 114
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