GHL System Berhad Annual Report 2020

59 A N N U A L R E P O R T 2 0 2 0 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL CONT’D KEY INTERNAL CONTROL PROCESSES (Cont’d) 7. Corporate Governance (Cont’d) c. Anti-Bribery and Corruption Policy The Group has implemented a policy on acts of Bribery and Corruption to mitigate the risk of fraud, corruption by providing the specific procedures or instructions regarding the appropriate actions needed to be undertaken in cases of suspected violations. The Group adopts a zero-tolerance stance in all forms of bribery and corruption by its employees and business associates. d. Anti-Money Laundering, Anti-Terrorism Financing, and Unlawful Activities Policy The Group had implemented the policy on Anti–Money Laundering, Anti-Terrorism, and Unlawful Activities which is to establish the framework and specific procedures against money laundering, financing of terrorism, and unlawful activities. The Group is committed to high standards of anti-money laundering, financing of terrorism, and unlawful activities compliance and requires all Directors and employees across the Group to adhere to these standards in preventing the use of its products and services for money laundering or terrorism financing purposes. e. Insurance Adequate insurance coverage 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. f. Compliance Framework The Group had established a Compliance Framework that sets out the approach for the Group in managing the mandatory compliance requirements, mitigating compliance risk and mandates the Group Compliance Department to drive compliance across the Group. g. Legal The Group 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 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 Groups’ risk management framework and internal control system.