Serba Dinamik Annual Report 2021

Section 7 | Corporate Governance 238 STATEMENT OF RISK MANAGEMENT & INTERNAL CONTROL The Board of Directors (“Board”) is committed in maintaining a sound risk management and system of internal control, and is pleased to present the following Statement on Risk Management & Internal Control for the financial year ended 30 June 2021. This Statement on Risk Management and Internal Control is made pursuant to Paragraph 15.26 (b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad and in accordance with the Principles as stipulated in the Malaysian Code on Corporate Governance 2021 and the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers. This Statement outlines the nature and scope of risk management and internal control of the Group and covers all of the Group’s operations inclusive of associate companies during the year under review. 1. Board’s Responsibility The Board has ultimate responsibility for the oversight of risk management and satisfying in maintaining a system of internal controls which covers financial and operational controls and risk management framework is sufficiently robust and sound. In addition, the Board has overall responsibility for the Group’s risk management and internal control system and for reviewing its adequacy and effectiveness. To ensure adequacy, effectiveness and integrity of the Group’s risk management and internal control, the Board has maintained full control over governance, strategic, financial, organizational, operational, regulatory and compliance and has put in place formal lines of responsibility and delegation of authority. The Board ensures that the risk management and internal control system manages relevant and material risks in pursuit of its strategies and business objectives. The Group’s system of risk management and internal control is designed to manage rather than to eliminate the risk of failure in achieving corporate objectives. The Board continually reviews the system to ensure that the risk management and internal control system provides a reasonable but not absolute assurance against material misstatements, financial losses or fraud. Pursuant to the above, the Board has instituted and has delegated to Audit Committee & Risk Committee (“ARC”) to uphold risk management & internal control oversight within the Group. The Board also tasks the Management to identify and assess the risks faced by the Group, and thereafter design, implement and monitor appropriate internal controls to control and mitigate those risks. 2. The Audit & Risk Committee The Terms of Reference of the ARC are defined under the ARC Report within this Annual Report and further details are disclosed under Principal B: Effective Audit and Risk Management in this Statement of the Corporate Governance Overview Statement. In specific, for Risk Management, the ARC provides oversight on risk management matters relating to activities of the Group, in respect to review, appraise and assess the efficacy of controls and progress of action plans taken to mitigate, monitor and manage overall risk exposure of the Group. • Ensuring that all relevant and material risks associated with the Group’s business operations have been identified and assessed to determine whether the risks are within the Group’s risk register.