ANNUALREPORT 2013
49
Statement on
RiskManagement
and Internal Control
This Statement onRiskManagement and Internal Control ismade in accordancewith the paragraph
15.26(b)ofMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad (“BursaSecurities”)
and as guided by theStatement onRiskManagement and Internal Control: Guidance for Directors of
Listed Issuers, which requiresMalaysian public listed companies tomake a statement in their annual
report about their stateof internal control, as aGroup.
Board responsibility
TheBoard of Directors recognises and acknowledges that a sound riskmanagement framework and
internal control systemplayan important role ingoodcorporategovernanceandefficientworkprocesses.
The systemof internal control coversnot only financial controlsbut alsonon-financial controls relating
to theoperationalmanagement, compliancecontrolsand riskmanagement.The internal control system
is designed tomanageandmitigate theeffects rather than toeliminate the risks.As such, the internal
control systemcanonlyprovide reasonableandnot absoluteassuranceagainstmaterialmisstatement
of management and financial informationor against loss or fraud.
RiskManagement Framework
As an integral part of the system of riskmanagement and internal control, there is an ongoing group
wide riskmanagement process for identifying, evaluating andmanaging the significant risks that may
affect the achievement of theGroup’s business objective.
Riskmanagement is firmly embedded in theGroup’smanagement systems and its policy is reviewed
annually toensure it is relevantandadequate tomanage theGroup’s risks,whichcontinue toevolvealong
with thechangingof businessenvironment.TheBoardstronglybelieves that prudent riskmanagement
is vital for business sustainability and the progressive enhancement of the shareholders’ value.
It is the responsibilityof keymanagement, headof subsidiarycompaniesandheadsof departments to
identify, evaluateandmanage risks facedby theGrouponanongoingbasiswithdefinedparameters.
The deliberation of risks and related mitigating responses are carried out at regular management
meetingsof theGroup.Significant risksareconveyed to theBoardat thequarterlyscheduledmeetings.
TheBoard,working togetherwith theManagement, continues to takemeasures to furtherstrengthen the
Group’s riskmanagement systemasoneof themeans toachieve theGroup’sbusinessobjectiveand
toensure that theGroup isalwaysalert toanysituation thatmight affect itsassets, incomeandprofits.
InternalAudit Function
All Internal Audit activities were conducted by an independent Internal Audit firm – Kloo Point Risk
Management ServicesSdnBhd.
The Internal Audit Function established by the Board, provides independent assurance on the
effectiveness of theGroup’s system of internal controls and it is centralized at theGroup level and it
reports to the respectiveAudit Committeeof theGroupon a quarterly basis or earlier as appropriate.
It undertakes regular and systematic reviews of the system of internal control, riskmanagement and
governance processes to provide reasonable assurance that such system operates satisfactorily and
effectivelywithin the respective subsidiaries aswell as across theGroup.
Detailsof theactivitiesof the internalaudit functionareprovided in theStatementof theAuditCommittee.
