annual report 2014
I
39
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
The Malaysian Code on Corporate Governance (“the Code”) sets out the principle that the Board of Directors (“the
Board”) of a listed issuer should establish a sound risk management framework and internal control system to safeguard
shareholders’ investment and assets of the Group.
The Statement on Risk Management and Internal Control by the Board on the Group is made pursuant to Paragraph
15.26(b) of the Bursa Malaysia Securities Berhad’s Main Market Listing Requirements (“MMLR”), and has been prepared
in accordance with the Principles and Recommendations relating to risk management and internal controls provided in
the Code as well as the
Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers.
BOARD RESPONSIBILITIES
The Board is committed to fulfilling its responsibility of maintaining a sound risk management framework to manage
risks and system of internal control for the Group. The Board also recognises that such risk management and internal
controls are designed to manage the Group’s risks within an acceptable level rather than to eliminate the risk of failure
to achieve business objective. Therefore, it can only provide reasonable and not absolute assurance against the risks of
material misstatement of management and financial information, or against financial losses and fraud or breaches of laws
or regulations.
The Board is assisted by the Management in implementing the Board’s approved policies and procedures on risk and
control by identifying and analysing risk information; designing, operating suitable internal controls to manage and control
these risks; and monitoring effectiveness of risk management and control activities.
RISK MANAGEMENT
The Board recognises that risk management is an integral part of the Group’s business operations. During the financial year
ended 31 December 2014, the Group has established a formalised risk management framework that ensures an on-going
process for systematically identifying, evaluating and mitigating risks that may impede the achievement of the Group’s
strategic objectives and business strategies. The process has been in place during the year up to the date of approval of
this Statement for inclusion in the Annual Report.
Risk Management Committee (“RMC”) has been set up to assist the Board in reviewing the adequacy and effectiveness
of the system of risk management. During the financial year under review, the RMC has carried out an assessment and
identified the key risks (encompassing internal and external strategic risks, financial risks, operational risks, investor relation
risks and legal risks) facing the business and its operations. The impact of key risks have been measured, and appropriate
internal controls identified, to ensure that they are maintained within acceptable and moderate level. The risk assessment
report has been submitted to the Board for deliberation.
Moving forward, the RMC will meet half-yearly to review the key risks identified, identify any new risks, assess the impact
of each identified key risks and formulate appropriate action plans for mitigation where necessary. The key risks and action
plans will then be reported to the Board for deliberation and approval accordingly.
Statement
on Risk Management and Internal Control
