Datasonic Group Berhad Annual Report 2020

DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 80 RISK MANAGEMENT (CONT’D) Risk Management Processes During the year, a total three (3) operational risk reviewswere carried out by the risk management function in accordance with the Risk Review Planning Memorandum for the financial year ended 31 March 2020 (“RRPM FY20”) that was approved by the Risk Management Committee via Circular Resolution dated 30 July 2019. Risks and the associated risk mitigation plans were collated into Risk Registers using the Likelihood and Consequence Matrix (“LCM”). High and significant risks were presented by the risk management function into Risk Reports that were tabled to the Risk Management Committee at its 1/2020 RMC Meeting held on 7 January 2020 and 2/2020 RMC Meeting held on 29 May 2020. In addition, other ad-hoc risk reviews, including those initiated by the Executive Committee (“EXCO”), were also tabled to the Risk Management Committee for notation and information on other risk management activities carried out during the year, including but not limited to status of due diligence on proposed acquisitions and/or preliminary risk assessments on investment proposals. Although not all risk management activities may be adequately recorded/documented by the risk management function, the Executive Directors and Management assert that risk management processes are on-going and operational risks are being reviewed, monitored and communicated periodically in the course of managing the business activities. KEY ELEMENTS OF THE INTERNAL CONTROL SYSTEMS OF THE GROUP The Group’s internal control systems during the financial year ended 31 March 2020 and up to the date of approval of this statement for inclusion in the Annual Report encompassed, inter alia, the following key elements:- CONTROL ENVIRONMENT 1. Board Committees The Board has delegated certain responsibilities to the Board Committees established in the Group, namely:- • The Audit Committee; • The Nomination and Remuneration Committee; • The Risk Management Committee; • The Procurement Committee; and • The ESOS Committee. These Board Committees have oversight authorities to examine and/or consider all matters within their scope of responsibilities as defined in their respective formalised terms of references and to report to the Board with their recommendations appropriately. The terms of references of all the Board Committees are published on the Company’s website atwww.datasonic. com.my . 2. Regular Board and Board Committees Meeting Regular Board and Board Committees meetings were conducted to provide effective governance practices. Decisions of the Board are only made after the required information is made available and deliberated upon by the respective Board Committees and the Board. The Board reviewed and approved the quarterly and full year financial results announced to Bursa Malaysia and shareholders, as applicable, based on the recommendations made by the Audit Committee. Additionally, the Board also approved and implemented the Group policies based on the recommendations made by the Board Committees to continuously improve on the effectiveness and efficiency of risk management and internal control system. The minutes of the Board Committee meetings which recorded these deliberations and decisions were subsequently presented to the Board for notation. Statement on Risk Management and Internal Control (Cont’d)