INTRODUCTION The Board is pleased to present its Risk Management and Internal Control Statement (“Statement”) for FY2022 which has been prepared pursuant to paragraph 15.26(b) of the MMLR on an additional statement to state risk management and internal control of the Company, 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 state of the internal controls of the Group. BOARD’S RESPONSIBILITY The Board acknowledges its responsibility for maintaining a sound system of risk management and internal control and reviewing its adequacy and effectiveness to safeguard shareholders’ interests and the Group’s assets. While the Management implements a system of risk management and internal control, it is important to note that this system has inherent limitations and is not designed to completely eliminate all risks. Instead, its purpose is to identify, evaluate, manage, and monitor risks to an acceptable level, thereby mitigating the risk of material misstatements, losses, contingencies, fraud, or irregularities. It is important to note that this system can only provide reasonable and not absolute assurance against such risks that may impede the Group’s achievement of corporate objectives. RISK MANAGEMENT FRAMEWORK The Board recognises that risk management should be an integral part of the business operation. Respective Heads of Departments are responsible for identifying, evaluating, managing, and mitigating both existing and potential risks related to their functions and/or departments on a day-to-day basis. Weekly management meetings are held to ensure that the Group’s risks are monitored and addressed properly. At these meetings, key risks and corresponding controls implementation are communicated amongst the Senior Management team. The RMC, comprising entirely of independent directors, provides oversight on risk management matters relating to the Group’s activities and ensures prudent risk management over the Group’s operations and businesses. To assist the RMC in fulfilling its oversight responsibilities, the Heads of Departments of various funtions are responsible to assess the Group’s risk management processes including the assessment of key strategic and operational risks. The Heads of Departments conduct their risk management activities and prepares quarterly risk assessment reports. Meanwhile, our in-house internal audit team performs audit work to identify any significant risks of the department. Both Heads of Departments and the 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 Heads of Departments had met four (4) times with the RMC to update their respective department’s 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 27 February 2023 where it was assessed to be adequate and no further amendments were required. The abovementioned risk management practices of the Group are the ongoing 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 136
RkJQdWJsaXNoZXIy NDgzMzc=