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ASIA MEDIA GROUP Berhad
Annual Report 2016
40
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 the Malaysian Code on Corporate Governance 2012 (“the Code”), which requires Malaysian public
listed companies to maintain a sound system of risk management and internal control to safeguard
shareholders’ investment and company’s assets.
Board Responsibility
The Board 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 tomanage 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, in the process of continuing to identify, evaluate
and manage significant risks for the financial year under review and up to the date of approval of this
statement. The Board shall continue to evaluate the existing risk management practices, and where
appropriate and necessary, revise such practices accordingly.
Internal Audit Function
All Internal Audit activities were conducted by an independent internal auditor Kloo Point Risk
Management Services Sdn Bhd. The total costs incurred by the Group for its internal audit function
in the financial year ended 31 December 2016 amount to RM10,000.00.
The Internal Audit Function established by the Board, provides independent assurance on the
effectiveness of the Group’s system of internal controls and it is centralized at the Group level and it
reports to the respective Audit Committee of the Group on a quarterly basis or earlier as appropriate.