Serba Dinamik Annual Report 2021

Integrated Report 2021 239 STATEMENT OF RISK MANAGEMENT & INTERNAL CONTROL 1 Risk Management Function 2 Group Risk Register 3 Insurance NO. ELEMENT DELIBERATION The Risk Management Function is responsible for the development and the implementation of the Risk Management which defined the key principles of risk governance, and the development of risk management practices and tools which enable the continuous identification, measurement, controlling and monitoring of all relevant and material risks of the Group including the identification of emerging risks. In addition, 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 the ARC. The Group Risk Register & Profile is permanent agenda of ARC. The main objectives of the programme are to inculcate a robust risk governance and compliance culture to all segments of wide staff ranging from staff at all levels to senior management, which is conducted on a bi-yearly basis. The Board, for review, deliberation and approval, which consists of the following principal risks: • Strategic Risk • Compliance Risk • Operation Risk • Financial Risk 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. In addition, the insurance coverage will reduce Group business exposure towards risk and will mitigate risk occurrence such as: • Damage or loss Group’s physical assets; • Volatility and cash flow pressures from following loss; and • Compensation claims. • Designing, implementing and monitoring of the risk management and internal control system in accordance with the Group’s strategies and overall risk register. • Identifying changes in the operational environment which give rise to risks or emerging risks and taking appropriate actions and the prompt escalation of the identified risks and actions to the Board. For Internal Control, the ARC reviews adequacy and effectiveness of internal controls in relation to the audits conducted by the Internal Audit function during the year. In summary, internal control and risk-related matters which warranted attention of the Board were recommended by the ARC to the Board for its deliberation & approval, and matters or decisions made within the ARC’s purview were escalated to the Board for its notation. 3. Key Elements Of Risk Management System The Group’s risk management system comprises the following elements: