Serba Dinamik Annual Report 2018

SERBA DINAMIK HOLDINGS BERHAD ANNUAL REPORT 2018 157 The Risk Management Function is responsible for overall coordination of risk management of the Group by cooperating closely with Risk Focal Person who undertakes monitoring and assessing risks controls in their respective Division, Department & Unit. The Risk Management Function reports directly to ARC. 4. Group Risk Register The Group Risk Register & Profile is a permanent agenda of meeting of ARC, which deliberated the following principal risks: • Strategic Risk • Compliance Risk • Operation Risk • Financial Risk 5. Insurance Sufficient insurance coverage and physical safeguards on major assets are in place to ensure the Group’s assets are adequately covered against any mishap that could result in material loss. Key Internal Control Elements All aspects of internal control are cascaded down by the Management to permeate groupwide in ensuring its successful implementation within the Group. The Group’s internal control elements comprise the following key elements: 1. Authority & Responsibility • Terms Of Reference The Board has delegated certain responsibilities to Board Committees, as follows, through clearly defined and approved Terms of Reference (“TOR”) which shall be reviewed when necessary: • Audit & Risk Committee • Nomination & Remuneration Committee • Investment Committee The above TOR is accessible in the website of the Group. In addition, the Management Executive Committees (“ManCo”) was established to ensure that the day-to-day business operations are consistent with the corporate objectives, strategies, business plans and budgets as approved by the Boards and its committees. • Organisational Structure The Group has an organizational structure with formal lines of authority and accountability which defined clear segregation of powers, roles and responsibilities to guarantee effective control at various levels of the Group. The Management is responsible for the implementation of the Group’s strategies and day-to-day businesses based on the established structure and limits of authority. The organizational structure is reviewed from time to time to address changes in business environment as well as to keep abreast of current and future trending of new technologies, products and services. • Responsibility Levels The Group has instituted the Levels of Authority which was approved by the Board and is subject for review from time to time to reflect limit of authority of Management in all aspects of the Group’smajor business, operations and functions. S TAT E M E N T O F R I S K M A N AG E M E N T & I N T E R N A L C O N T R O L