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Asia Media Group Berhad
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Annual Report 2015
STATEMENT ON
RISK MANAGEMENT AND INTERNAL CONTROL
This Statement on Risk Management and Internal Control is made in accordance with the paragraph
15.26(b) of Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”)
and as guided by the Statement on Risk Management and Internal Control: Guidance for Directors of
Listed Issuers, which requires Malaysian public listed companies to make a statement in their annual
report about their state of internal control, as a Group.
Board responsibility
The Board of Directors recognises and acknowledges that a sound risk management framework
and internal control system play an important role in good corporate governance and efficient work
processes.
The system of internal control covers not only financial controls but also non-financial controls relating
to the operational management, compliance controls and risk management. The internal control
system is designed to manage and mitigate the effects rather than to eliminate the risks. As such,
the internal control system can only provide reasonable and not absolute assurance against material
misstatement of management and financial information or against loss or fraud.
Risk Management Framework
As an integral part of the system of risk management and internal control, there is an ongoing group
wide risk management process for identifying, evaluating and managing the significant risks that may
affect the achievement of the Group’s business objective.
Risk management is firmly embedded in the Group’s management systems and its policy is reviewed
annually to ensure it is relevant and adequate to manage the Group’s risks, which continue to evolve
along with the changing of business environment. The Board strongly believes that prudent risk
management is vital for business sustainability and the progressive enhancement of the shareholders’
value.
It is the responsibility of key management, head of subsidiary companies and heads of departments to
identify, evaluate and manage risks faced by the Group on an ongoing basis with defined parameters.
The deliberation of risks and related mitigating responses are carried out at regular management
meetings of the Group. Significant risks are conveyed to the Board at the quarterly scheduled meetings.
The Board, working together with the Management, continues to take measures to further strengthen the
Group’s risk management system as one of the means to achieve the Group’s business objective and
to ensure that the Group is always alert to any situation that might affect its assets, income and profits.