GHL System Berhad Annual Report 2020

56 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 ) STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL CONT’D GROUP RISK MANAGEMENT SYSTEM (Cont’d) 5. COVID-19 Pandemic Risk During March 2020 under the Movement Control Order (“MCO”), the Group operated under its Business Continuity mode and had enforced the GHL Disease Outbreak Framework to mitigate and minimize the impact of risks associated with the pandemic on its business and operations. In order to mitigate this risk, the Group has undertaken the following measures: - t "TTFTTFE UIF JNQBDU PG $PWJE QBOEFNJD PO UIF (SPVQ T CVTJOFTT PQFSBUJPOT BOE QVU JO QMBDF UIF relevant Standard Operating Procedures across the business activities; t 5IF (SPVQ IBE JNQMFNFOUFE WBSJPVT TBGFUZ BOE IFBMUI NFBTVSFT TVDI BT XPSL GSPN IPNF EJTUSJCVUJPO PG face masks and sanitisers, travel advisory, staff communication on health awareness, temperature screening and restrict visitors to the office premises. Given the fluidity of the situation, the Group will continuously monitor the impact of Covid-19 and take appropriate and timely measures to minimise the impact of the outbreak on the Group’s operations. KEY INTERNAL CONTROL PROCESSES The following areas of governance contained clearly defined corporate values, code of business ethics and conduct as well as comprehensive policies and procedures to assist Management in ensuring that a sound system of internal control is maintained in the Group. 1. Authority and Responsibility a) Board Committees Board Committees are established and operate under clearly defined Terms of Reference (“TOR”) to provide oversight function and ascertain the adequacy of the internal control framework in the Group. TOR is reviewed periodically to objectively and independently focus on certain responsibilities delegated by the Board. b) Delegation of Authority The Delegation of Authority clearly defines the authority and authorisation limits of the Management in all aspects of the Company’s key business decisions, provides guidance on the division of responsibilities, and is periodically reviewed to reflect and be in line with the growth of the business, operational and organizational environment. 2. Monitoring and Reporting Monthly management meetings are led by the respective country heads for various lines of operations and business units, on key business performance, operating statistics, and regular matters. This enables effective monitoring of significant variances and deviation from standard operating procedures and budget. The Board is also kept appraised of the Company’s performance during the scheduled board meetings with the Company’s business performance and plans being reviewed and deliberated. 3. Policies and Procedures The Group has defined and documented internal policies and standard operating procedures to ensure inter alia sound internal controls are implemented and compliance with applicable laws and regulations. The policies and procedures are also being reviewed on a regular basis to ensure its relevance and effectiveness; in which Internal Audit function carried out reviews on the Group’s policies and procedures according to the approved annual audit plans. Compliance with these procedures is an essential element of the internal control framework.