GHL System Berhad Annual Report 2018

a n n u a l r e p o r t 2 0 1 8 47 KEY INTERNAL CONTROL PROCESSES (cont’d) 7. Human Capital (cont’d) b. Code of Ethics and Conduct A set of Code of Ethics and Conduct setting out expected ethical standards and code of conduct has been established, which is binding on all employees in the Group, and is available at the official website www.ghl.com . c. Whistle Blowing Policy The Group has implemented a Whistle Blowing Policy which was updated in 2018 to provide an avenue for employees and all stakeholders; to report any suspected acts that are in breach of the Group’s Code of Ethics and Conduct, internal policy and applicable laws or regulations in a confidential manner. The Policy also guarantees an employee or stakeholder 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 Chairperson are primarily responsible to ensure that all whistle blowing reports are properly followed up. d. Anti-Bribery and Corruption Policy The Board has reviewed and updated the Policy on acts of bribery and corruption in 2018, 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 Legal and Compliance Department. The Group's Legal and Compliance 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 is adequate and effective in all material aspects. 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 and, where appropriate, enhancing the Group’s risk management framework and internal control system. STAT EMENT ON R I SK MANAGEMENT AND I NT ERNA L CONTROL C O N T ’ D