GHL System Berhad Annual Report 2017

ANNUAL REPORT 2017 51 KEY INTERNAL CONTROL PROCESSES (cont’d) 7. Human Capital (cont’d) 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 laws or regulations 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 Chairman 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 procedures or instructions regarding the appropriate actions needed to be undertaken in cases of suspected violations. 8. Insurance Adequate insurance for major assets, building and machinery in all operating divisions and subsidiaries are in place to ensure the Group’s assets are sufficiently covered against any calamity that will result in material losses to the Group. 9. Legal and Compliance The compliance with laws and regulations is managed at the respective business unit level and monitored by the Group Compliance and Legal Department. The Group Compliance and Legal Department also provides legal advisory and assists in the preparation and review of any legal documentation. 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 FY 2017. 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. REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS As required by paragraph 15.23 of the Listing Requirements, the External Auditors have reviewed this Statement on Risk Management and Internal Control. As set out in their terms of engagement, the said review procedures were performed in accordance with the Audit and Assurance Practice Guide 3: Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control included in the Annual Report (“AAPG 3”) issued by the Malaysian Institute of Accountants. AAPG 3 does not require the External Auditors to consider whether this Statement covers all risks and controls, or to form an opinion on the adequacy and effectiveness of the Group’s risk management and internal control system. AAPG 3 also does not require the External Auditors to consider whether the processes described to deal with material internal control aspects of any significant problems disclosed in this Annual Report will, in fact, remedy the problems. Based on their procedures performed, the External Auditors have reported to the Board that nothing has come to their attention that causes them to believe that this Statement is not prepared in all material respects, in accordance with the disclosures required by paragraphs 41 and 42 of the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers, nor is factually inaccurate. This statement is approved by the Board of Directors on 27 March 2018. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL CONT’D