Datasonic Group Berhad Annual Report 2020

DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 84 KEY ELEMENTS OF THE INTERNAL CONTROL SYSTEMS OF THE GROUP (CONT’D) INFORMATION AND COMMUNICATION 1. Formal Reporting on Key Operational Matters by the Managing Director to the Board Key operational activities, financial performance analyses, statistics and key risks that affect the operational activities are formally reported by the Managing Director at the Board meetings. This is to ensure that the Board receives continuous updates on the business operations and makes informed and timely decisions on policies in relation to the Group’s operations, where necessary. 2. Group Strategic Corporate Communication As part of the key strategic initiatives of the Group, the Group Strategic Corporate Communication Department was established in September 2019 to set the direction for effective information dissemination and to help the internal communications across the Group and external communications are effectivelymanaged and controlled to fulfill the needs of the Group and stakeholders. 3. Continuous improvement on IT systems The Group had undertaken continuous development and improvement on the information technology systems and platforms to support the operational efficiency in various operational activities as well as to enable effective decision-making by providing the decision makers with timely and accurate information. 4. Group Disaster Recovery Plan The Group’s disaster recovery/business continuity plan (“BCP”) has been developed and the implementationwas on-going during the financial year. The plan will help to minimise downtime and data loss as well as to ensure the continuity of business operations in the unfortunate event of management systems breakdown and other potential hazards such as fire and flood. Key information and data back-ups of are systematically performed on a periodical basis. Prior to the commencement of the Movement Control Order effective 18 March 2020, we have implemented our BCP on 16 March 2020 to ensure that operations are carried out with minimal disruptions within the scopes of business activities/essential services as approved by the authorities. MONITORING 1. Reviews by the Audit Committee Reviews carried out by the Audit Committee on the adequacy and effectiveness of the internal control systems concerning operational issues reported by the internal and external auditors and attributable actions taken by Management in respect of the findings to provide assurance that control procedures are in place and are being followed as intended. Internal control and risk-related matters which warranted the attention of the Board were conveyed by the Audit Committee to the Board. 2. Independent Reviews by Internal Audit Department The Internal Audit Department (“IAD”) plays a role to provide some comfort to the Board on the adequacy and effectiveness of the risk management practices of the Group by adopting a risk-based approach and focusing on the key risks areas to determine the auditees and auditable areas. IAD adopts a risk-based audit approach in which the Likelihood and Consequence Matrix (“LCM”) is used to determine the auditees and auditable areas. If necessary, the auditable areas are modified periodically to reflect any change and development in prevailing risks prioritisation and business concerns. Statement on Risk Management and Internal Control (Cont’d)