GHL System Berhad Annual Report 2019

G H L S Y S T E M S B E R H A D 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) 54 PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT I. AUDIT AND RISK COMMITTEE (“ARC”) The ARC takes on the role of assisting the Board in the discharge of its responsibility of overseeing the financial reporting process and ensuring that the results of the Company’s operations are fairly presented in its financial statements. The ARC comprises three (3) members in which the ARC is currently chaired by Dato’ Chan Choy Lin, Carol – Independent and Non-Executive Director. The Terms of Reference set out its duties and responsibilities, are disclosed on the Company’s official website at www.ghl.com . Through the Policy Statement on Auditor Independence, which was approved by the Board, the policy establishes the responsibility to assess the suitability, objectivity, and independence of the External Auditor to the ARC. A full Audit and Risk Committee Report enumerating its composition, summary of activities and the Group Internal Audit function during the financial year is included in this Annual Report. II. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK The Board acknowledges its responsibility for maintaining a sound system of risk management and internal control of the Group that provides reasonable assurance of effective and efficient business operations, compliance with laws and regulations as well as internal procedures and guidelines. The Board has delegated to the ARC the responsibility of reviewing the effectiveness of control procedures and risk management framework and to report to the Board on all its findings and recommendations for deliberations. This system, by its nature, can however only provide reasonable but not absolute assurance against misstatement, fraud, or loss. The Statement on Risk Management and Internal Control furnished in this Annual Report provides an overview of the state of risk management and internal controls within the Group. Sustainability Strategies The Board is mindful of the importance of good corporate governance practices in the application of sustainability practices throughout the Group, communities and environment, the benefits of which are believed to translate into better corporate performance and value creation for its shareholders. The Board believes that the Group’s activities which demonstrate its commitment towards creating a better environment, social and sustainability during FY2019, as well as various communication channels established for stakeholders to communicate with the Company, are disclosed in the Sustainability Statement included in this Annual Report. CORPORATE GOVERNANCE OVERVIEW STATEMENT CONT’D