Annual report 2014
41
7. Human Capital
a. Performance appraisal & employee trainings
Annual appraisal systems are implemented for the employees at all levels within the group, enforcing
dialogue between management and subordinates for continuous improvement on employees’
performance. Arising from this appraisal, training need analysis is performed to identify the necessary
required training for the employees to address the areas of improvement identified.
b. Code of ethics
A set of code of ethics setting out expected ethical standards and code of conduct has been
established which is binding all employees in the Group.
c. Whistleblowing policy
The Group has implemented a whistleblowing policy to provide an avenue for employees; to report
any suspected acts that are in breach of the Group’s code of ethics, internal policy and applicable
law or regulation in a confidential manner.
The policy also guarantees an employee making a report of improper conduct in good faith shall
not be subject to reprisal action or discrimination of any kind by the Company. The Board and ARC
Chairman are primarily responsible to ensure that all whistleblowing reports are properly followed up.
d. Fraud policy
The Group has implemented a policy on acts of Fraud, Misconduct and Dishonesty which provides
the specific procedure or instructions regarding the appropriate actions needed to be undertaken in
cases of suspected violations.
8. Insurance
Adequate insurance of major assets; building and machinery in all operating divisions and subsidiaries is in
place to ensure the Group’s assets are sufficiently covered against any calamity that will result in material
losses to the Group and/or its subsidiaries.
BOARD ASSESSMENT
The Board is of the view that the Group’s overall risk management and internal control system was adequate
and effective in all material aspects during 2014. Both the Group CEO and Group CFO have given the same
assurance to the Board. The Board however recognises that risk management is an evolving process in a
changing business environment and is committed to continuously monitor the adequacy and effectiveness of
and where appropriate, enhancing the Groups’ risk management framework and internal control system.
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
