Tropicana Corporation Berhad Annual Report 2018

TROPICANA CORPORATION BERHAD 88 ABOUT TROPICANA OUR STRATEGIC PERFORMANCE OUR LEADERSHIP SUSTAINABILITY AT TROPICANA STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL Introduction This statement is made pursuant to Paragraph 15.26 (b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad on the Groups compliance with the Principles and Best Practices relating to internal control as stipulated in the Malaysia Code of Corporate Governance and is guided by the Statement on Risk Management & Internal Control: Guidelines for Directors of listed issuers. Board’s Responsibility T he Board acknowledges its overall responsibility in establishing a sound risk management framework and internal control system as well as reviewing its adequacy and effectiveness for the Group. The Board is satisfied that the Group has implemented an ongoing process to identify, evaluate, monitor, manage and respond to significant risks faced by the Group in its achievement of the business goals and objectives in consideration of the change in the business environment and regulatory requirements. This ongoing review process has been in place for the entire financial year under review by the Board to ensure that adequate and effective Group risk management and internal control systems have been embedded in all aspects of the Group’s activities. Due to limitations that are inherent in any systems of risk management and internal control, these systems adopted by the Group are designed to manage rather than to eliminate the risk of failure to achieve business objectives. These systems can only provide reasonable but not absolute assurance against any material financial misstatement, fraud or loss. However, the extent of responsibility does not extend to include that of the Group’s associated companies for the purpose of this review. Risk Management Processes and Internal Control Systems Risk Management Processes (“RMP”) The Board is committed to the development of an effective Risk Management Framework for identifying, evaluating, monitoring and managing the significant risks affecting of its business objectives. The Risk Management Department and the Enterprise Risk Management (“ERM”) program were formalised in the year 2012. The figure below illustrates the risk management process as implemented in Tropicana Corporation Berhad (“TCB”). 6. Risk Reporting Gain assurance about effective 5. Risk Action Plan Identify actions, implement response 4. Risk ownership Define risk ownership / responsibility 1. Risk Identification Identify the risk 2. Risk Evaluation Assess and evaluate the risk 3. Risk Response Reduce, Spread, Transfer, Avoid Continuous monitoring, review, communication, consultation Risk Analysis Risk Management