GHL System Berhad Annual Report 2018

a n n u a l r e p o r t 2 0 1 8 41 SUMMARY OF ACTIVITIES DURING FINANCIAL YEAR ENDED 31 DECEMBER 2018 (cont’d) Risk Management and Internal Control: a. Reviewed the minutes of meeting and the progress of Risk Management Committee (“RMC”) in its on-going identification and monitoring of key risks and the controls and processes implemented in managing these risks; b. Reviewed the key risks as reported by the RMC in respect of businesses and operations; c. Reviewed the action plans by RMC to ensure significant internal controls are promptly implemented to mitigate the key risks identified; d. Evaluated, together with Group CEO, Group CFO and Group CRO, the overall adequacy and effectiveness of the system of internal controls during the financial year through a review of the results of work performed by Internal and External Auditors and the RMC; e. Reviewed and revised the whistle blowing policy; and f. Monitored the whistle blowing programme as part of the risk management structure and good corporate governance practice. Internal Audit: a. Reviewed and assessed the adequacy of resources and reporting structure of Group Internal Audit ("GIA") to ensure the audit plan is executed effectively and independently; b. Reviewed the competency of GIA to ensure GIA are provided with adequate trainings and guidance to possess the required skill sets and knowledge; c. Reviewed the annual internal audit plan to ensure adequacy of scope and coverage of the auditable areas i.e. high risk areas were audited on a regular basis; d. Reviewed the status of internal audit plan on a quarterly basis; e. Discussed the major internal audit findings, weaknesses and significant internal audit matters raised by the GIA and other outsourced service providers for special engagements. The ARC also sought Management’s commitment for corrective actions as recommended in internal audit reports; and f. Reviewed the status of audit findings in ensuring appropriate action plans are implemented timely by the Management, with no audit issues left unaddressed. Recurrent Related Party Transaction: a. Reviewed annually the recurrent related party transactions undertaken by the Group for compliance with the MMLR and the appropriateness of such transactions entered into by the Company and its subsidiaries to avoid potential or actual conflict of interest to ensure the decisions are based on the best interest of the Company and its shareholders. Other activities: a. Reviewed the Statement on Risk Management and Internal Control, Corporate Governance Overview Statement, and Audit and Risk Committee Report prior to the Board’s approval for inclusion in the Annual Report; b. Reviewed the Corporate Governance Report prior to the Board’s approval for submission to Bursa Malaysia; and c. Conducted a self-assessment to evaluate the Committee’s overall effectiveness in discharging its responsibilities. aud i t and r i sk commi t t e e report C O N T ’ D